another question MCQ
this is about wacc, if someone could help me that would be great thanks
''which of the following statement must be correct regarding the weighted average cost of capital (WACC) estimation?''
1) wacc is the minimum rate of return on the company's investments that can satisfy both shareholder and bondholders (i think this is correct) 2) the debt in wacc calculation is the debt used to fund the operations and investments of the firm. Using this rationale, it should include, all interest bearing debts, short term as well as long term and non interest bearing liabilities such as accounts payable, supplier credit deferred taxes and accrued item (I think this is correct as well) 3) industry beta is often used when the firm is privately held, reorganized, or restructured. (this one should be correct) 4) in the UK market values are often used in computing the debt and equity weights in wacc because this is required by financial conduct authority ( i'm not too sure about this statement)
a) 1 and 2 ( I initially choose that one but I realized that 3 is correct so since none answer propose 1 2 and 3 shall I use e) ? b)1 and 3 c)2 and 3 d) 1 2 and 4 e) none of the answers in a b c d are correct
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