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Regarding WACC, which of the following is true? Multiple Choice The value of the firm will be maximized when the WACC is minimized. The WACC

Regarding WACC, which of the following is true?

Multiple Choice

  • The value of the firm will be maximized when the WACC is minimized.

  • The WACC is virtually impossible to calculate for a firm with multiple divisions.

  • The WACC is the appropriate discount rate for all new projects of the firm.

  • Since discount rates and firm value move in the same direction, minimizing the WACC will minimize the value of the firm.

  • The optimal capital structure is the one that maximizes the WACC.

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