Weighing schemes for calculating the weighted average cost of capital include all of the following EXCEPT
A) book value weights.
B) optimal value weights.
C) market value weights.
D) target weights.

Question

Quizplus · Accepted Answer

Book value weights, market value weights, and target weights are all common methods for calculating the weighted average cost of capital. Optimal value weights, however, is not a commonly used method.

Weighing Schemes for Calculating the Weighted Average Cost of Capital