The WACC does not depend on the risk of a company's line of business.

Name: The WACC does not depend on the risk of a company's line of business.
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The WACC (weighted average cost of capital) is based on the cost of each source of financing used by a company, such as debt and equity. The risk associated with a company's line of business can impact the cost of equity and debt, which are included in the WACC calculation. Therefore, the WACC does depend on the risk of a company's line of business.

The WACC Does Not Depend on the Risk of a Company's