The Weighted Average Cost of Capital Is ________

question 49

Multiple Choice

The weighted average cost of capital is ________.

• A)the average of the cost of each financing component,weighted by the proportion of each component
• B)the cost of capital for the firm as a whole
• C)made up of three financing components: the cost of debt,the cost of preferred stock,and the cost of equity
• D)All of the above

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Definitions:

Substantial Performance

A legal concept indicating that a party has fulfilled enough of its contractual obligations to warrant payment, even if some minor specifications are not met.

Doctrine

A doctrine is a set of principles or beliefs, especially in legal contexts, establishing a particular rule of law or policy guidance.

Good Faith

The principle of honesty and sincerity in dealings and transactions, free of intent to deceive or defraud.

Complete Performance

The full and exact fulfilment of contractual obligations or tasks as agreed.