What Does the Symbol KD Represent in the Formula WACC

question 24

Multiple Choice

What does the symbol kD represent in the formula WACC = kDWE + kEWD ?

• A) The market value of debt
• B) The market/debt equivalent
• C) The weighting applied to debt
• D) The cost of debt

---

Definitions:

Contend

To strive in opposition or against difficulties; to compete or argue.

Mowrer's Two-Factor Theory

Mowrer's Two-Factor Theory is a psychological theory that integrates classical conditioning and operant conditioning to explain the development of phobias and anxiety.

Avoidance

A behavioral response aimed to prevent an unpleasant outcome or stimulus, often developed as a coping mechanism in both humans and animals.