CPA CFE Practice Test
CPA CFE Finance
What does the weighted average cost of capital (WACC) represent for a company?
Select your answer
A
The cost of the company's most expensive source of financing
B
The blended cost of all sources of capital (debt and equity), weighted by their proportion in the company's target capital structure
C
The interest rate on the company's bank loans
D
The required return on the company's common shares only
Hint
