Which of the Following Statements Is Correct

question 51

Multiple Choice

Which of the following statements is correct?

• A) If the risk-free rate increases, it will have no impact on the weighted average cost of capital.
• B) Investor returns are reduced when float costs increase, and therefore float costs reduce the weighted average cost of capital.
• C) The weighted average cost of capital is a historical cost.
• D) None of these choices are correct.

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