THE WEIGHTED AVERAGE COST OF CAPITAL (WACC) IS THE CAPITAL BUDGET...

130. The weighted average cost of capital (WACC) is the capital budgeting approach that a. Finds the value of the unlevered project and then factors in the additional value of financial side effects and from the value of growth options b. Discounts the after-tax free cash flows to stockholders at the required rate of return on the equity c. Is a one-step process that works well for projects that have stable debt-equity ratios d. Cannot be used for international projects