Post Utme Elizade University 2020 Commerce Question 34

Practice objective / multiple choice question 34 from the 2020 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2020 Commerce Objective / Multiple Choice
Question 34 POST_UTME_ELIZADE_UNIVERSITY • 2020 • COMMERCE • objective

A firm's cost of capital is calculated using the weighted average cost of capital (WACC) formula. If a firm has a debt-to-equity ratio of 2:1 and a cost of debt of 10%, what is its WACC?

Answer Options

A. 5%
Correct Answer B. 10%
C. 15%
D. 20%
Correct Answer
B
Correct Option:
10%

About This Question

This is Post Utme Elizade University 2020 Commerce Question 34. It is one of the objective questions from the 2020 Post Utme Elizade University Commerce examination.

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