alleryStart learning →The weighted average cost of capital blends which two costs?
ACost of debt and cost of equity
BCost of goodwill and cost of land
CCost of sales and cost of labour
DCost of tax and cost of inflation
Answer & Solution
Correct answer: A. Cost of debt and cost of equity
WACC is the weighted average of the after-tax cost of debt and the cost of equity, reflecting both financing sources.
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