The capital structure weights used in computing a firm's weighted average cost of capital:. A. Are based on the book values of the firm's debt and equity.
B. Are based on the market values of the firm's debt and equity securities.
C. Depend upon the financing obtained to fund each specific project
D. Remain constant over time unless the firm issues new securities
E. Are restricted to the firm's debt and common stock.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?