Which of the Following Is Included in Calculating the Weighted

question 16

Multiple Choice

Which of the following is included in calculating the weighted average cost of capital?

• A)interest rate paid on borrowed money
• B)average return earned by stockholders
• C)taxes
• D)all of the above

---

Definitions:

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures how efficiently a company uses its labor and supplies in production.

Cost of Goods Sold

Refers to the immediate expenses related to manufacturing products that a business sells.

General and Administrative Costs

Expenses related to the overall administration and management of a business, excluding production and sales costs.

Total Debt Ratio

A financial metric that compares a company's total liabilities to its total assets, indicating what proportion of a company's assets is financed by debt.