question archive The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: Reward to risk ratio
The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: Reward to risk ratio
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The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the:
| Reward to risk ratio. |
| Weighted capital gains rate. |
| Structured cost of capital. |
| Subjective cost of capital. |
| Weighted average cost of capital. |
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Answer is E, weighted average cost of capital is equal to proportion of firm finance with equity multiplied by cost of raising equity plus proportion of firm finance with debt multiplied by cost of raising
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