Minimizing the weighted average cost of capital (WACC)is the same as maximizing the:
A)market value of the firm.
B)book value of the firm.
C)profits of the firm.
D)liquidating value of the firm.

Question

Quizplus · Accepted Answer

Minimizing the WACC means that the firm is able to raise funds at the lowest cost possible, which would increase the value of the firm. Therefore, minimizing the WACC is equivalent to maximizing the market value of the firm.

Minimizing the Weighted Average Cost of Capital (WACC)is the Same