The Weighted Average Cost of Capital Is ________

question 49

Multiple Choice

The weighted average cost of capital is ________.

• A)the average of the cost of each financing component,weighted by the proportion of each component
• B)the cost of capital for the firm as a whole
• C)made up of three financing components: the cost of debt,the cost of preferred stock,and the cost of equity
• D)All of the above

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Definitions:

Competitive

A characteristic of businesses or individuals that strive to provide products or services in a manner that outperforms their rivals.

Type A Orientation

The way people are characterized as competitive, impatient, aggressive, and achievement oriented.

Aggressive

A behavior characterized by boldness or assertiveness, with a possible inclination to dominate or challenge others.

Personality Types

A method for categorizing individuals into specific groups based on their patterns of behavior, thoughts, and feelings.