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

question 10

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:

Impression Management

Strategies or actions taken by individuals to influence how they are perceived by others, typically to appear more favorable.

Followers

Individuals or groups that choose to support and take direction from a leader or organization.

Influence Bosses

Strategies or actions aimed at affecting the decisions, behaviors, or perceptions of one's direct superior.

Internal Attribution

The process of explaining one's own behavior or that of others by attributing causes to internal factors, such as personality or character.