mbarber3705 mbarber3705

11-03-2020
Business

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A firm's cost of capital (WACC) represents the maximum rate of return that a firm can earn from its capital budgeting projects to ensure that the value of the firm does not decrease true or false

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thamimspartan thamimspartan

18-03-2020

Answer:

False

Explanation:

WACC stands for Weighted Average Cost of Capital.

It refers to minimum return a company should earn on it's current asset base to please all owners, creditors, investors and any other capital providers. WACC is the expected rate that a company is supposed to pay to all its holders to finance the assets.

WACC is influenced by the external market. Management does not influence WACC.

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