The weighted average of the firm's costs of equity,preference shares,and after tax debt is the:

Question

Quizplus · Accepted Answer

The weighted average of the firm's costs of equity, preference shares, and after-tax debt is the weighted average cost of capital (WACC). It is the minimum rate of return that the firm needs to earn on its investments to satisfy its investors. Therefore, the correct answer is E, weighted average cost of capital (WACC).

The Weighted Average of the Firm's Costs of Equity,preference Shares,and