Answer: Option D
Explanation: In simple words, weighted average cost of capital refers to the amount of return that the investors of a company are expecting. It includes all the security holders of the company and calculates the rate as per the weights that are applicable in the target capital structure.
Weighted average cost of capital is of high importance as it helps an organisation to clearly evaluate and analyze its current financial situation and if they need to change their existing capital structure.
A high WACC calls for higher profits as company has to make sure that security holders gets their returns and vice versa.
Answer is C. Developed countries owe so much dept that their governments aren’t able to invest in infrastructure improvement
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