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Which of the following statements is NOT true regarding WACC? A WACC is the weighted average cost of capital for the firm. B The rate

Which of the following statements is NOT true regarding WACC?

A WACC is the weighted average cost of capital for the firm.

B The rate calculated as WACC is an accurate measure of the weighted average rates demanded by all investors.

C WACC is the amount a firm needs to earn on its investments to keep all investors (creditors and debtors) happy.

D The hurdle rates used by almost all firms is higher than WACC.

E For investment analysis, WACC should be calculated using current stock and bond prices, not historic prices.

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