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

question 5

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 weight of equity financing
• B) the risk-free rate of return
• C) the firm's weight of debt financing
• D) All of the above are necessary to determine a firm's WACC.

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Definitions:

Validity

The extent to which a test or instrument measures what it claims to measure accurately.

Expensive

Something that requires a high cost or a large amount of resources to obtain.

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Woodworth Personality Data Sheet

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