Intermediate WACC

Test your Intermediate-level Corporate Finance Basics Wacc skills in Business Finance Integration. This timed assessment evaluates your expertise in Accounting.

Duration: 5 minutes

•40 questions

Time Remaining: 05:00

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Question 1 of 40Assessment

If a firm's operations become less risky without changing its capital structure, how would this theoretically affect its WACC?

A. Its WACC would increase due to lower expected returns.

B. Its WACC would remain the same since capital structure is constant.

C. Its WACC would decrease as both its cost of equity and cost of debt would likely fall.

D. Its WACC would only be affected if the corporate tax rate also changed.

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