Post Utme Lasu 2022 Commerce Question 2

Practice objective / multiple choice question 2 from the 2022 Post Utme Lasu Commerce examination.

Post Utme Lasu 2022 Commerce Objective / Multiple Choice
Question 2 POST_UTME_LASU • 2022 • COMMERCE • objective

A firm's cost of capital is the minimum return that investors demand for their investment in the firm. What is the name of the formula used to calculate the cost of capital?

Answer Options

Correct Answer A. WACC = (E/V) x Re + (D/V) x Rd x (1 - Tc)
B. WACC = (E/V) x Re + (D/V) x Rd x Tc
C. WACC = (E/V) x Re + (D/V) x Rd
D. WACC = (E/V) x Re + (D/V) x Rd x (1 + Tc)
Correct Answer
A
Correct Option:
WACC = (E/V) x Re + (D/V) x Rd x (1 - Tc)

About This Question

This is Post Utme Lasu 2022 Commerce Question 2. It is one of the objective questions from the 2022 Post Utme Lasu Commerce examination.

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