In calculating the WACC, it's most appropriate to use:

Question

Quizplus · Accepted Answer

Market values for structure and component costs should be used for calculating the WACC because they reflect the current market perception of the value of the company and its assets, which is used to determine the cost of capital. Book values may not accurately reflect the current market value of the company's assets and liabilities, and the target structure may not necessarily reflect the current market conditions. Using market values provides a more accurate representation of the cost of capital and allows for better decision-making when it comes to financing future projects.

In Calculating the WACC, It's Most Appropriate to Use