题目
题目
单项选择题

A business has its WACC of 10%, what does this number mean to a business ?

选项
A.The IRR of the business is likely to be less than 10%
B.This is the maximum return that the business can produce
C.This is the potential return that the business can produces
D.The business will require at least 10% return from a project due to its cost of capital being 10%
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标准答案
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思路分析
First, let’s restate the scenario to anchor our thinking: the business has a weighted average cost of capital (WACC) of 10%, and we are asked what this number means for the business. Option 1: 'The IRR of the business is likely to be less than 10%'. This is a misconception. WACC is a hurdle rate representing the minimum acceptable return adjusted for risk and financing costs. It does not imply that the Intern......Login to view full explanation

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