Which of the Following Statements Is TRUE About the Weighted

Multiple Choice

Which of the following statements is TRUE about the weighted average cost of capital (WACC) ?

A) If a business has a high risk level, the WACC will be higher.
B) If a business has a high risk level, the WACC will be lower.
C) The WACC represents the corporation's internal return targets.
D) The WACC is the same as a business's ROI.