The ________ is the cost of each financing component multiplied by that component's percent of the total funding amount.
A)NPV
B)IRR
C)cost of capital
D)cost of debt

Question

Quizplus · Accepted Answer

The statement describes the calculation of the weighted average cost of capital (WACC), which is the cost of each financing component (such as debt, equity, etc.) multiplied by its percentage in the total capital structure. This results in a weighted average cost of all financing components, which is the cost of capital. Therefore, the correct answer is "cost of capital."

The ________ Is the Cost of Each Financing Component Multiplied