9. Which of the following explanations about WACC is not true? a. It's an asset related cost of capital. b. It has to be related to the project you undertake. c. It is related to after-tax based cash flows. d. It is related to historical (embedded) costs rather than margial costs (for WACC). e. In calculating WACC, weights are related to target capital structure rather than actual numbers.

Understanding Business
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ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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9. Which of the following explanations about WACC is not true?
a. It's an asset related cost of capital.
b. It has to be related to the project you undertake.
c. It is related to after-tax based cash flows.
d. It is related to historical (embedded) costs rather than margial costs (for WACC).
e. In calculating WACC, weights are related to target capital structure rather than actual
numbers.
Transcribed Image Text:9. Which of the following explanations about WACC is not true? a. It's an asset related cost of capital. b. It has to be related to the project you undertake. c. It is related to after-tax based cash flows. d. It is related to historical (embedded) costs rather than margial costs (for WACC). e. In calculating WACC, weights are related to target capital structure rather than actual numbers.
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