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which of the following are true? multiple select question. ideally, we should use book values in the wacc. ideally, we should use market values in the wacc. book values are often similar to market values for equity. book values are often similar to market values for debt.

Respuesta :

The following statements are true:

  • Ideally, we should use market values in the WACC.
  • Book values are often similar to market values for equity.
  • Book values are often similar to market values for debt.

Using Market Values and Book Values in the WACC

The Weighted Average Cost of Capital (WACC) is one of the most important metrics used to evaluate the cost of capital for a company. WACC is calculated by taking into account the cost of equity, debt and any other sources of capital. The ideal way to calculate WACC is to use market values, as they are more reflective of the current market environment.

However, book values are often similar to market values for both equity and debt, making them a good substitute if market values are not available. Therefore, it is accurate to say that book values are often similar to market values for both equity and debt.

Learn more about Market Values: https://brainly.com/question/4804206

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