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o-na [289]
3 years ago
9

A firm's WACC:

Business
1 answer:
marusya05 [52]3 years ago
5 0

Answer:

The correct option is B is a benchmark discount rate that may be adjusted for the riskiness of each project.

Explanation:

<em>A firm's WACC: </em>

The <em>Weighted Average Cost of Capital (WACC</em>) . Is the rate at which a company’s future cash flows need to be discounted to arrive at a present value for the business. <em>It reflects the perceived riskiness of the cash flows.  </em> Succinctly put, if the value of a company equals the present value of its future cash flows, WACC is the rate we use to discount those future cash flows to the present.

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