Capital structure and component costs should be calculated using:

Question

Quizplus · Accepted Answer

Capital structure and component costs should be calculated using market values for both structure and costs. This is because market values reflect the current market conditions and are a more accurate representation of the actual value of the firm and its financing. Book values, on the other hand, are based on historical costs and may not reflect current market conditions.

Capital Structure and Component Costs Should Be Calculated Using