Bank Overdraft Is Not Included in the Calculation of the WACC

question 31

True/False

Bank overdraft is not included in the calculation of the WACC.

---

Definitions:

Risky Undertaking

An action or project that involves a significant chance of failure or loss.

Expected Value

In statistics, Expected Value refers to the sum of all possible values each multiplied by the probability of its occurrence, offering a measure of the center of distribution of a variable.

Net Profit

The total earnings minus the costs and expenses of a business or investment, indicating the actual profit made.

Investment

The process of distributing funds or resources with the aim of earning income or profit.