The firm's overall cost of capital that is a blend of the costs of the different sources of capital is known as the firm's:

Question

Quizplus · Accepted Answer

The weighted average cost of capital (WACC) takes into account the cost of all sources of financing for a company, including debt, preferred stock, and equity. It is calculated by taking the proportion of each type of financing and multiplying it by the corresponding cost of that financing, then adding them together. This gives a blended rate that reflects the overall cost of capital for a company. Therefore, the best choice is D - weighted average cost of capital.

The Firm's Overall Cost of Capital That Is a Blend