When discussing weighing schemes for calculating the weighted average cost of capital, ________.

Question:When discussing weighing schemes for calculating the weighted average cost of capital, ________.

1.Market value weights are preferred over book value weights and target weights are preferred over historic weights.

2.Book value weights are preferred over market value weights and target weights are preferred over historic weights.

3.Book value weights are preferred over market value weights and historic weights are preferred over target weights.

4.Market value weights are preferred over book value weights and historic weights are preferred over target weights

Answer:1