In weighted average cost of capital, capital components are funds that usually offer by____________?
Correct answer: B. Investors
- A. Stock market
- B. Investors
- C. Capitalist
- D. Exchange index
Explanation
The components of WACC represent funds supplied by investors and lenders, such as debt holders and equity shareholders. A stock exchange or market index does not itself provide the firm's financing.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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