A company's weighted average cost of capital is also commonly referred to as its hurdle rate. Group of answer choices True False

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Brittany Brennan

Business

8 November, 16:16

A company's weighted average cost of capital is also commonly referred to as its hurdle rate. Group of answer choices True False

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Answers (1)

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Chuckles · Answer 1

The statement is: True.

Explanation:

Weighted Average Cost of Capital (WACC), also known as hurdle rate or cost of capital, measures the cost of borrowing capital for a company, given the relative quantities of each type of debt and equity that a company has assumed. Debt and equity of a company, or its capital structure, could include common stock, preferred stock, and bonds.