Which of the following statement about a firmrsquos weighed, Ask an Expert

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Which of the following statement about a firm’s weighed average cost of capital (WACC) is incorrect

a. WACC is the after-tax cost of capital the company must pay to finance itself, based on the company’s

expected or target capital structure.

b. WACC increases when the firm’s equity cost of capital component declines.

c. WACC is used to value the firm and to value projects that are of average risks.

d. WACC increases when the firm’s cost of debt increases.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92389390

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