Previous Page Next Page Page 10 0 Question 10 (2 points) Which of the following is true when interpreting the Weighted Average Cost of Capital? A company's WACC is the right discount rate for average risk projects The WACC is the return the company needs to earn on its investments, after tax, to satisfy all its security holders. If the firm increases its debt ratio, both the debt and equity will become riskier. Both will require higher rates of return to compensate for the increased risk. All of the above. Previous Page Next Page Page 10 of 20