Which one of the following represents the rate of return a firm must earn on its assets if it is to maintain the current value of its securities?

Question

Quizplus · Accepted Answer

The Weighted Average Cost of Capital (WACC) is the rate of return that a firm needs to earn on its assets in order to maintain the current value of its securities. It takes into account both the cost of debt and the cost of equity, weighted by the proportion of each in the firm's capital structure.

Which One of the Following Represents the Rate of Return