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.

---

Definitions:

Genotype

The genetic makeup of an individual organism, including all of their genes, both expressed and not expressed.

Phenotype

Phenotype is the set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Molecule

The smallest unit of a chemical compound that can exist, consisting of two or more atoms bonded together.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.