In case the firm is all-equity financed, WACC would be equal to:Options :Cost of debtCost of equityNeither A nor BBoth A and B
Question
Solution 1
The correct answer is: Cost of equity.
Here's why:
WACC stands for Weighted Average Cost of Capital. It is the average rate of return a company is expected to pay its investors; the weights are the proportion of debt and equity in the company's capital structure.
If a firm is all-equity financed, Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI
Similar Questions
In case the firm is all-equity financed, WACC would be equal to:Options :Cost of debtCost of equityNeither A nor BBoth A and B
What is the company cost of capital for a firm financed with 30% debt if the debt requires a 10% return and equity requires a 16% return?
+1-0Tag to RevisitCAPM model is used to calculate which of the following ?Answer areaCost of Equity Cost of Term Loans Cost of DebtCost of Preference Share
An example of an cost is when a firm issues more equity and an entrepreneur increases leisure time.
In the WACC formula, We stand for _____________.a.Cost of debtb.Weight of equity financingc.Weight of debt financingd.Cost of equity
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.