cture.com/courses/14736/quizzes/78511/take/questions 1934505 Question 6 1 pts Wh

Question

cture.com/courses/14736/quizzes/78511/take/questions 1934505 Question 6 1 pts Which of the following statements related to cost of capital is FALSE? the weighted average cost of capital (WACC) is an estimate of the cost of all the capital a company has raised to acquire the assets that it currently holds there is an "opportunity cost" associated with using reinvested earnings, hence they are not "free. e o the percentage flotation cost associated with issuing new common equity is typically lar it is possible for the correct cost of capital for one division of a firm to differ from the correct cost of capital for another division or from the firm's overall weighted average cost of capital (WACCI.

Explanation / Answer

Total assets company holds includes cash or other current asstes while current liability includes account payabls, and accured expenses which is not included in WACC calculation.

So Statement (A) is false.

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