The most appropriate weights used to calculate the weighted average cost of capital are the Blank______ weights. Multiple choice question. market-value government-mandated salvage-value book-value
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The most appropriate weights used to calculate the weighted average cost of capital are the Blank______ weights.
market-value
government-mandated
salvage-value
book-value
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- . How are the component costs combined to forma weighted average cost of capital (WACC),and why is it necessary to use the WACC in capitalbudgeting?Why are market-based weights used instead of book-value-based weights when computing the weighted average cost of capital (WACC)?In computing the weighted average cost of capital (WACC), the Blank______ weights for debt and equity should be used. Multiple choice question. current target historical past
- The weights used in calculating the weighted average cost of capital should be based on ________. a book values b estimated future values c market valuesIn computing the cost of capital, do we use the historical costs of existing debt and equity or the current costs as determined in the market? Why?How is the weighted average cost of capital calculated? Write outthe equation
- Does weighted average cost of capital is similar to Cost of Capital?Define each of the following terms:a. Weighted average cost of capital, WACCWhat is the role of the WACC (weighted average cost of capital) in valuation? How will WACC (weighted average cost of capital) impact the valuation process?
- Define asymmetric information theory (capital structure)Explain briefly what working capital and working capital management are and what they do. Explain the link between current asset policy and liquidity, profit, and risk as well as any other relevant factors. So, which policy do you believe to be the most beneficial?Briefly explain the meaning of working capital and working capital management. Also explain the relationship of current asset policy with liquidity, profit and risk. Which policy do you think is good?
