If a Company's WACC Is Less Than the Required Return

question 65

Multiple Choice

If a company's WACC is less than the required return on equity,then the firm:

• A) is financed with more than 50% debt.
• B) is perceived to be safe.
• C) has debt in its capital structure.
• D) is all equity financed.

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Definitions:

Race

Race is a social construct that categorizes humans based on physical characteristics, ancestry, historical social positions, and identities, often linked with power relations and social hierarchies.

Ethnicity

A category of identity based on common cultural characteristics such as language, religion, customs, and heritage.

Psychological Domination

A form of control exerted over another individual's mind or emotions, often leading to the manipulation of their thoughts, feelings, or behaviors.

Cultural

Relating to the ideas, customs, and social behaviors of a society or group of people.