Thermacorp's Weighted Average Cost of Capital Is 13

question 28

Multiple Choice

Thermacorp's weighted average cost of capital is 13.5. If the average WACC in the heating and cooling industry is 19, Thermacorp can be said to be earning

• A) above normal economic performance.
• B) above normal accounting performance.
• C) below normal economic performance.
• D) below normal accounting performance.

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