Q927
Rate of return which is asked by investors is classified as
A.
average cost of capital
B.
mean cost of capital
C.
weighted cost of capital
D.
weighted average cost of capital
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Rate of return which is asked by investors is classified as weighted average cost of capital. 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. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.