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

question 37

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 accumulated depreciation
• 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:

Impulsivity

A tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Type A

Refers to a personality characterized by competitiveness, high ambition, impatience, and a sense of urgency, often linked to stress and cardiovascular diseases.

Heart Attack

A medical condition that occurs when the flow of blood to the heart is blocked, often by a blood clot, leading to damage to the heart muscle.