When the WACC of a company is determined, how can it be used (or interpreted) by the management of the company?

Group of answer choices

1) It is considered the minimum rate of return required by the Equity Capital Investors.

2) It is considered the minimum required rate of return to for the debt capital investors.

3) It is considered the minimum required rate of return to be achieved by the company for the entire investors (= creditors and shareholders together).

4) It can be used as the target ROA of the company.

5) 3) & 4) only