While calculating the weighted average cost of capital, market value weights are preferred because

Book value weights fluctuate violently.

Book value weights are historical in nature

It is vary difficult to estimate book value weights at the time of calculating the weighted average cost

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

While calculating the weighted average cost of capital, market value w

1.	While calculating the weighted average cost of capital, market value weights are preferred because
A.	Book value weights are historical in nature
B.	It is vary difficult to estimate book value weights at the time of calculating the weighted average cost
C.	This is in conformity with the definition of cost of capital as the investor s minimum required rate of return
D.	Book value weights fluctuate violently.
Answer» D. Book value weights fluctuate violently.