When Determining a Firm's Weighted Average Cost of Capital (WACC)

question 10

Multiple Choice

When determining a firm's weighted average cost of capital (WACC) , which of the following terms is NOT necessary?

• A) the firm's tax rate
• B) the firm's cost of debt
• C) the firm's cost of equity
• D) All of the above are necessary.

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Definitions:

Parasympathetic

The part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.

Somatic

Relating to the body, specifically as distinguished from the mind or psyche.

Central

Pertaining to or situated at the center, or essential and core aspect of something, especially in the context of information or systems.

Genotype

The genetic makeup of an individual organism, including the set of genes inherited from their parents.