Answer: Weighted Average Cost of Capital
Step-by-step explanation:
The Weighted Average Cost of capital for a company refers to rate a company pays on the various capital methods it employs to fund its operations such as common and preferred stock as well as debt.
This rate is used to evaluate the attractiveness of economic ventures and projects because the company needs the rate of return on the project to be at least higher than the company WACC so that the company may be able to pay off its capital holders.