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Which of the following statement about a firms weighed average cost of capital (WACC) is incorrect a. WACC is the after-tax cost of capital the
Which of the following statement about a firms weighed average cost of capital (WACC) is incorrect
a. WACC is the after-tax cost of capital the company must pay to finance itself, based on the companys
expected or target capital structure.
b. WACC increases when the firms equity cost of capital component declines.
c. WACC is used to value the firm and to value projects that are of average risks.
d. WACC increases when the firms cost of debt increases.
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