Calculation of company costs of capital should be conducted with market values whenever possible.

Question

Quizplus · Accepted Answer

Calculation of company costs of capital should be conducted with market values whenever possible to accurately reflect the current market conditions and investors' perceptions of the company's risk and future prospects. Using book values can result in an underestimation or overestimation of the cost of capital.

Calculation of Company Costs of Capital Should Be Conducted with Market