Which of the Following Statements Is TRUE About the Weighted

question 157

Multiple Choice

Which of the following statements is TRUE about the weighted average cost of capital (WACC) ?

• A) If a business has a high risk level, the WACC will be higher.
• B) If a business has a high risk level, the WACC will be lower.
• C) The WACC represents the corporation's internal return targets.
• D) The WACC is the same as a business's ROI.

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Definitions:

Adipose Stores

Adipose stores refer to the body's fat reserves, primarily stored in adipose tissue, which provides insulation and energy.

Depolarization Phase

Change in the electric charge difference across the plasma membrane that causes the difference to be smaller or closer to 0 mV; phase of the action potential in which the membrane potential moves toward zero, or becomes positive.

Action Potential

A rapid and temporary electrical charge that passes along the membrane of a nerve or muscle cell, initiating activity.

Repolarization Phase

The stage of a heartbeat where heart muscle cells return to their resting electrical state, following depolarization.