In computing the weighted average cost of capital, the historical weights are either book value or market value weights based on actual capital structure proportions.

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The statement is true. The weights used in computing the weighted average cost of capital (WACC) can be based on either book value or market value weights, which are determined based on the actual proportions of debt, equity, and other capital components in a company's capital structure. Historical weights are often used, but some companies may also use target (or optimal) weights to reflect their desired capital structure. The WACC is a key metric in corporate finance that reflects the cost of all the capital (debt and equity) that a company uses to finance its operations, and is used in evaluating investment opportunities and making financing decisions.

In Computing the Weighted Average Cost of Capital, the Historical