The weighted average cost of capital company that has both debt and equity in its capital structure will use its welghted average cost of capital (WACC) as its discount rate. Gased on your understanding of the weighted average cost of copital, complete the following statements: - In general, the , the risk of a firm as percelved by its existing and potential investors, the lower is the firm's weighted average cost of capital (WACC). - The caiculation hted average cost of capital (WACC) should be on the cost of the next dollar of financial capital to be raised. - Unless operating in a rapidly changing economic environment, firms will generally calculate their current weighted average cost of capital True or False: Although the use of market value weights is theoretically superior to the use of book value weights in the calculation of a firm's weighted average cost of capital (WACC), firms often use book value weights due to their relative stability compared to the dally changes in market. volues. True False True or False: The weighted average cost of capital represents the maximum cefum that a firm should earn on new investments exhibiting the firm's average risk level. True False 1. The weighted average cost of capital A company that has both debt and equity in its capltal structure will use its weighted average cost of capital (WACC) as its discount rate. Based on your understanding of the weighted average cost of copital, complete the folliowing statements: - In general, the the risk of a firm as perceived by its existing and potential investors, the lower is the firm's weighted average cost of capital (WACC). - The calculation of the weighted average cost of capital (WACC) should be on the raised. - Unless operating in a ropldly changing economic environment, firms will generall: current weighted average cost of capital True or False: Although the use of market value weights is theoretically superior to the use of book value weights in the calculation of a firm's weighted average cost of capital (WACC), firms often use book value weights due to their relative stability compared to the daily changes in market vatues. True False True of False: The weighted average cost of capital represents the maximum return that a firm should eam on new investments exhibiting the firm ' average risklevel. True False The weighted average cost of capital company that has both debt and equity in its capitai structure will use its weighted average cost of capital (WACC) as its discount rate. 3ased on your understanding of the weighted average cost of capital, complete the following statements: - In general, the the risk of a firm as perceived by its existing and potential investors, the lower is the frm's welghted average cost of capital (WACC). - The calculation of the weighted average cost of capital (WACC) should be on the cost of the next dollar of financial capital to be raised. - Unless operating in a rapidy changing economic environment, firms will generally calculate their current weighted average cost of capital of market value weights is theoretically superior to the use of book value weights in the calculation of a firmy II (WACC), firms often use book value weights due to their relative stability compared to the dally changes in market Tive Falue True or falue: The weighted swerage cost of capital represents the makimum return that a firm should earn on new inveltments exhibiting the frim's average risk level. Trun Fatse