单选题

Which of the following is the least appropriate method for an external analyst to use to estimate acompany's target capital structure for determining the weighted average cost of capital (WACC)?

A、 Using averages of comparable companies' capital structure
B、 Using the company's current capital structure at book value weights
C、 Using statements made by the company's management regarding capital structure policy

【正确答案】 B

【答案解析】

An external analyst does not know a company's actual target capital structure. Consequently, the analyst should rely on market value (not book value) weights for the components of the company's current capital structure.