Question

A company's weighted average cost of capital: Multiple Choice is equivalent to the aftertax cost of the outstanding liabilities. should be used as the required return when analyzing any new project. is the return investors require on the total assets of the firm. remains constant when the debt-equity ratio changes. is unaffected by changes in corporate tax rates.

Answer 1

is the return investors require on the total assets of the firm

Step-by-step explanation:

The weighted average cost of capital is to computed by multiplying the cost of the capital structure with their weights

Here the company would predicted to pay on an average for the security holders in order to finance the assets

Therefore as per the given scenario, the above represent the answer

And, the same is relevant