Q517
Rate of return which is required to satisfy stockholders and debt holders is classified as
A.
weighted average cost of interest
B.
weighted average cost of capital
AnswerC.
weighted average salvage value
D.
mean cost of capital
Answer: Option B
Solution
Answer: Option B
Solution:
Rate of return which is required to satisfy stockholders and debt holders is classified as weighted average cost of capital. Weighted average cost of capital ( WACC) is the average after-tax cost of a company's various capital sources used to finance the company.