The capital structure weights used in computing the weighted average cost of capital are
◦ constant over time provided that the debt-equity ratio changes in unison with the market values.
◦ based on the face value of the firm's debt.
◦ computed using the book value of the long-term debt and the shareholder's equity.
◦ based on the market value of the firm's debt and equity securities.
◦ limited to the firm's debt and common stock.