The Weighted Average Cost of Capital

Multiple Choice

The Weighted Average Cost of Capital:

A) equals the sum of the cost of equity and the cost of debt, weighted by their respective shares of the project's capital.
B) equals the product of the cost of equity and the cost of debt, weighted by their respective shares of the project's capital.
C) is often used as the discount value in calculating the net present value of a project.
D) both equals the sum of the cost of equity and the cost of debt, weighted by their respective shares of the project's capital and is often used as the discount value in calculating the net present value of a project.