Evaluate the statement that the weighted average cost of capital (WACC) for a firm (assuming that all

Question:

Evaluate the statement that the weighted average (WACC) for a firm (assuming that all three assumptions of Modigliani and Miller’s propositions hold) is always less than or equal to the for the firm.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...