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WACC (weighed average cost of capital) is derived by finding a firm's cost of equity & cost of debt & averaging them according to the market value of each sources. a. True b. false
a.true
Answer ( A ) is correct .
W.A.C.C : is a firm's cost of :
1- cost of debt Financing .( Cheapest Because Of Tax Deductability ).
2- Cost of Preferred Stocks .
3- Cost Of Equity ( Common Stocks & Retained Earnings ) .
averaging them according to the market value of each sources.
A
It is true
True!
WACC = Cost of debt + cost of equity
Kindly note debt is tax free and equity is not.
True
Weighted average cost of capital is main thing has decide and as per customer requirement,So answer is 'Yes'.
