WACC is derived by finding a firm's cost of equity & cost of debt & averaging them according to the market value of each sources. a. True b. false

a.true

Answer ( A ) is correct .

W.A.C.C : is a firm's cost of :

1- cost of debt Financing .( Cheapest Because Of Tax Deductability ). 

2- Cost of Preferred Stocks .

3- Cost Of Equity ( Common Stocks & Retained Earnings ) .

averaging them according to the market value of each sources.

A

A. True

It is true

true

True!

WACC = Cost of debt + cost of equity

Kindly note debt is tax free and equity is not.

True

Weighted average cost of capital is main thing has decide and as per customer requirement,So answer is 'Yes'.