If you calculate an average of a firm\'s cost of equity and its cost of debt (af
ID: 2657397 • Letter: I
Question
If you calculate an average of a firm's cost of equity and its cost of debt (after tax) that is weighted based on its capital structure, you are arriving at its:
Select one:
a. reward to risk ratio
b. weighted capital gains rate
c. structured cost of capital
d. subjective cost of capital
e. weighted average cost of capital
A firm’s capital structure is which of the following?
Select one:
a. working capital management
b. barrier to entry
c. cost analysis
d. capital budgeting
e. company’s debt and equity financing
Explanation / Answer
If you calculate an average of a firm's cost of equity and its cost of debt (after tax) that is weighted based on its capital structure, you are arriving at its
e. weighted average cost of capital
A firm’s capital structure is which of the following?
e. company’s debt and equity financing
A firm’s capital structure is as mix of debt and equity financing
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