The weights used in calculating the firm's weighted-average cost ...

[Mr3Hunna]

The weights used in calculating the firm's weighted-average cost of capital are equal to the proportion of debt and equity ____.
 a. used to finance the project
  b. used to finance the projects undertaken last year
  c. in the industry average capital structure
  d. in the firm's target capital structure
  e. none of the above

Question 2

Adverse selection is
 a. when people act differently because they are insured
  b. when more risk averse people want to be insured more
  c. when people at greater risk want to be insured more
  d. when your guess at a test question is wrong

[kaillie]

Answer to Question 1

d

Answer to Question 2

c

[Mr3Hunna]

Excellent

[FergA]

Gracias!