A firm's weighted average cost of capital is a function of (1)the individual costs of capital,(2)the capital structure mix,and (3)the level of financing necessary to make the investment.

Question

Quizplus · Accepted Answer

The statement is true as the WACC is calculated by taking into account the individual costs of capital, the proportions of each source of capital in the firm's capital structure, and the amount of financing required for the investment.

A Firm's Weighted Average Cost of Capital Is a Function