Ask Question
2 May, 08:18

The cost of capital is the average cost an organization pays to obtain the resource (i. e., borrowed funds, as well as on funds provided by investors in the company's stock) necessary to make investments. True/False

+5
Answers (1)
  1. 2 May, 11:24
    0
    True

    Explanation:

    The cost of capital or Weighted average cost of capital WACC determines firms cost of capital. It includes all sources of finance which are included in firms capital structure. The sources of finance can be borrowed funds, shareholders etc

    The WACC is calculated with given formula:

    WACC = E/V Re + D/V * Rd (1 - T)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The cost of capital is the average cost an organization pays to obtain the resource (i. e., borrowed funds, as well as on funds provided by ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers