Weighted average cost of capital (WACC) is calculated as the weighted average of the costs of a firm's different sources of capital, such as debt, preferred equity, and common equity.

Question

Quizplus · Accepted Answer

WACC is indeed calculated as the weighted average of the costs of all sources of capital a firm uses, including debt, preferred equity, and common equity, reflecting the proportion of each as a percentage of the overall capital structure.

Weighted Average Cost of Capital (WACC) Is Calculated as the Weighted