Examlex

Solved

In General,firms Should Use Their WACC to Evaluate Capital Budgeting

question 9

True/False

In general,firms should use their WACC to evaluate capital budgeting projects because most projects are funded with general corporate funds,which come from a variety of sources.However,if the firm plans to use only debt or only equity to fund a particular project,it should use the after-tax cost of that specific type of capital to evaluate that project.


Definitions:

Communicate

The act of sharing or exchanging information, news, or ideas through speech, writing, visuals, or signals.

Shut Down

Shut Down refers to the process of turning off a computer or device completely, terminating all operations and saving data before power is cut off.

Menu Command

An option in a software application’s menu that executes a specific function or command when selected.

Touch Screen

A display screen that detects and responds to touch gestures, allowing users to interact directly with what is displayed.

Related Questions