The Weighted Average Cost of Capital for a Firm Is

Multiple Choice

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

A) discount rate which the firm should apply to all of the projects it undertakes.
B) rate of return a firm 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 shareholders should expect to earn on their investment in this firm.