Which of the following statements is correct?
A) The WACC is the appropriate discount rate to use for cash flows similar in risk to the firm.
B) The WACC for a firm reflects the risk and the target capital structure to finance the firm's existing assets as a whole.
C) The WACC is the weighted average of the costs of the different types of capital (debt and equity) that have been used to finance a company; the cost of each type of capital is weighted by the proportion of the total capital that it represents.
D) All of the above.
Correct Answer:
Verified
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