The weighted average cost of capital for a company is least dependent upon the:
A) company's beta.
B) coupon rate of the company's outstanding bonds.
C) growth rate of the company's dividends.
D) company's marginal tax rate.
E) standard deviation of the company's common stock.

Question

Quizplus · Accepted Answer

The weighted average cost of capital (WACC) is primarily influenced by the cost of equity and the cost of debt, which are affected by factors like the company's beta, coupon rate, and tax rate. The standard deviation of the company's common stock is more related to the risk and volatility of the stock, not directly to WACC.

The Weighted Average Cost of Capital for a Company Is