The cost of each component of a firm's capital structure multiplied by its weight in the capital structure is called:

CS Executive · Financial and Strategic Management · PYQS · June 2021
The cost of each component of a firm's capital structure multiplied by its weight in the capital structure is called:
(A) Marginal cost of capital
(B) The cost of debt
(C) Weighted average cost of capital
(D) Opportunity Cost

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Cost of Capital

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