When Determining a Firm's Weighted Average Cost of Capital (WACC)

question 5

Multiple Choice

When determining a firm's weighted average cost of capital (WACC) , which of the following terms is NOT necessary?

• A) the firm's weight of equity financing
• B) the risk-free rate of return
• C) the firm's weight of debt financing
• D) All of the above are necessary to determine a firm's WACC.

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Definitions:

Antipsychotics

A class of medication primarily used to manage psychosis, including delusions, hallucinations, paranoia, or disordered thought, found in certain mental health conditions such as schizophrenia.

Extrapyramidal Side Effects

Involuntary movements or motor control disturbances associated with certain medications, typically those used to treat psychiatric disorders.

Weight Gain

An increase in body weight, which can result from various factors, including increased calorie intake, decreased physical activity, or underlying health conditions.

SSRIs

Stands for Selective Serotonin Reuptake Inhibitors, a class of drugs commonly used to treat depression and anxiety.