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:

Amount of Supply

The total quantity of a particular good or service available for purchase at any given time.

Nonrenewable Sources

Energy sources that cannot be replenished in a short period, such as coal, oil, and natural gas.

Renewable Sources

Energy sources that are replenished naturally and sustainably, such as wind, solar, and hydroelectric power.

Transitional Expression

Phrases or words used to link sentences and paragraphs smoothly, helping to signal connections between ideas.