What is the outcome when the cost of equity capital is combined with after-tax cost of debt?

Question

Quizplus · Accepted Answer

The combination of the cost of equity and after-tax cost of debt results in the calculation of the weighted average cost of capital (WACC). This is a crucial metric in determining the minimum rate of return that a company must earn on its investments to satisfy its investors and maintain its stock price. Therefore, the correct choice is C) weighted average cost of capital.

What Is the Outcome When the Cost of Equity Capital