Which of the following statements about the weighted average cost of capital (WACC) is most accurate?
i. A firm may appropriately use its own WACC to discount cash flows from any capital budgeting project the firm might consider.
ii. Compute WACC by averaging a firm’s historical costs of debt and equity using weights created from the book values of debt and equity on the firm’s most recent balance sheet.
iii. Compute WACC by averaging a and equity using weights created from the current market values of the firm’s outstanding debt and equity securities. firm’s current costs of debt