A firm's cost of capital represents a firm's weighted average cost of financing.
Not in chapter

Name: A firm's cost of capital represents a firm's weighted average cost of financing. Not in chapter
Brand: Quizplus
Rating: 4.8 (63 reviews)

Question

Quizplus · Accepted Answer

The statement correct; a firm's cost of capital is calculated by taking into account the weighted average of the costs of all of the different types of financing that the firm uses, including debt, equity, and other sources of funding.

A Firm's Cost of Capital Represents a Firm's Weighted Average