Question
The Weighted Average Cost of Capital (WACC) represents the: a. historical cost of capital of the firm b.the marginal cost of capital for the firm
The Weighted Average Cost of Capital (WACC) represents the:
a. historical cost of capital of the firm
b.the marginal cost of capital for the firm - the cost that should be applied to new projects that are similar risk.
c. the interest rate appropriate to apply to projects financed by 100% equity that are vastly different than the average project of the firm.
d. the interest rate appropriate to apply to projects financed by 100% debt that are vastly different than the average project of the firm.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
