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Weighted average cost of capital is the result of multiplying the cost of each item in the capital structure by its correspon
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Answer #1
Answer: TRUE.
Explanation:
WACC is obtained by summing up the products of the
cost of each source of capital with its proportion in the
total capital.
Thus, WACC = cost of debt*weight of detb+cost of
preferred capital*weight of preferred capital+cost of
common equity*weight of common equity
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