A 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) is the firm's overall cost of capital that takes into account the proportions of each source of capital (equity, debt, preferred stock) used by the firm and the associated cost of each source. B, C, and D refer to specific costs of individual sources of capital.

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