Which of the following best describes the components of the weighted average cost of capital (WACC) ?
A) The component costs of capital are market-determined variables in the sense that they are based on investors' required returns.
B) The component costs of capital are not market-determined variables in the sense that they are based on investors' required returns.
C) The component costs of capital are market-determined variables in the sense that they are based on investors' past required rates of return.
D) The component costs of capital are not market-determined variables in the sense that they are based on investors' past required rates of return.c.
Correct Answer:
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