The ________ is a weighted average of the cost of funds which reflects the interrelationship of financing decisions.
A) internal rate of return
B) sunk cost
C) cost of capital
D) risk-free rate

Question

Quizplus · Accepted Answer

The cost of capital is the weighted average cost of funds and considers the interrelationship of financing decisions, like debt and equity, whereas the internal rate of return is the discount rate that makes net present value zero, the sunk cost is a cost that has already been incurred and cannot be recovered, and the risk-free rate is the rate of return on a risk-free investment.

The ________ Is a Weighted Average of the Cost of Funds