Homework Help is Here – Start Your Trial Now!
Business
Management
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.

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
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
See similar textbooks
icon
Related questions
Question
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.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON
SEE MORE TEXTBOOKS