Vidyalelo
Commerce · Q411

Financial Management

Graduate and Post Graduate · Commerce · question 411

Q411

In weighted average capital, capital structure weights estimation does not rely on value of

A.
investor's equity
B.
market value of equity
C.
book value of equity
Answer
D.
stock equity

Answer: Option C

Solution

Answer: Option C
Solution:
In weighted average capital, capital structure weights estimation does not rely on value of book value of equity. Book value of equity, also known as shareholder's equity, is a firm's common equity that represents the amount available for distribution to shareholders.