*/*_While calculating the weighted average cost of capital, market value weights are preferred because ____________.?

Question

TuteeHUB · Accepted Answer

This is in conformity with the definition of cost of capital as the investors minimum required rate of return

TuteeHUB · Answer

Book value weights are historical in nature

TuteeHUB · Answer

Book value weights fluctuate violently

TuteeHUB · Answer

Market value weights are fairly consistent over a period of time.

1.	/_While calculating the weighted average cost of capital, market value weights are preferred because ____________.?
A.	Book value weights are historical in nature
B.	This is in conformity with the definition of cost of capital as the investors minimum required rate of return
C.	Book value weights fluctuate violently
D.	Market value weights are fairly consistent over a period of time.
Answer» B. This is in conformity with the definition of cost of capital as the investors minimum required rate of return

/_While calculating the weighted average cost of capital, market value weights are preferred because ____________.?