The Overall Weighted Average Cost of Capital Is Used Instead

Multiple Choice

The overall weighted average cost of capital is used instead of costs for specific sources of funds because

A) use of the cost for specific sources of capital would make investment decisions inconsistent.
B) a project with the highest return would always be accepted under the specific cost criteria.
C) investments funded by low-cost debt would have an advantage over other investments.
D) use of the cost for specific sources of capital would make investment decisions inconsistent, and investments funded by low-cost debt would have an advantage over other investments.