Post Utme Osustech 2022 Commerce Question 39

Practice objective / multiple choice question 39 from the 2022 Post Utme Osustech Commerce examination.

Post Utme Osustech 2022 Commerce Objective / Multiple Choice
Question 39 POST_UTME_OSUSTECH • 2022 • COMMERCE • objective

A company's cost of capital is the minimum return that investors require for their investment. What is the effect of a decrease in the cost of capital on a company's weighted average cost of capital?

Answer Options

A. It increases the weighted average cost of capital
Correct Answer B. It decreases the weighted average cost of capital
C. It has no effect on the weighted average cost of capital
D. It increases the risk of bankruptcy
Correct Answer
B
Correct Option:
It decreases the weighted average cost of capital

About This Question

This is Post Utme Osustech 2022 Commerce Question 39. It is one of the objective questions from the 2022 Post Utme Osustech Commerce examination.

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