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Commerce · Q434

Financial Management

Graduate and Post Graduate · Commerce · question 434

Q434

In weighted average cost of capital, cost of capital which is risk adjusted and developed for each category of

A.
long-term projects
B.
industry [industrial] projects
Answer
C.
divisional projects
D.
short-term projects

Answer: Option B

Solution

Answer: Option B
Solution:
In weighted average cost of capital, cost of capital which is risk adjusted and developed for each category of industry [industrial] projects. The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.