Which of the Following Is True About the WACC

Multiple Choice

Which of the following is true about the WACC?

A) The WACC is the appropriate discount rate for all new projects of the firm.
B) The optimal capital structure is the one that maximizes the WACC.
C) The value of the firm will be maximized when the WACC is minimized.
D) The WACC is virtually impossible to calculate for a firm with multiple divisions.
E) Since discount rates and firm value move in the same direction, minimizing the WACC will minimize the value of the firm.