The Weighted Average Cost of Capital for a Firm with Debt

Multiple Choice

The weighted average cost of capital for a firm with debt is the:

A) discount rate that the firm should apply to all of the projects it undertakes.
B) rate of return a company must earn on its existing assets to maintain the current value of its stock.
C) coupon rate the firm should expect to pay on its next bond issue.
D) minimum discount rate the firm should require on any new project.
E) rate of return debtholders should expect to earn on their investment in this firm.