Respuesta :
False, Flotation costs should be included in the calculation of the Weighted Average Cost of Capital (WACC)
What is Weighted Average Cost of Capital (WACC)?
The weighted average cost of capital is the average interest rate that a company is expected to pay to all of its security holders in order to finance its assets. The WACC is also known as the firm's cost of capital. Importantly, it is determined by the external market rather than by management.
The weighted average cost of capital (WACC) is an important financial precept that is widely used in financial circles to determine whether a return on investment can exceed or meet the cost of invested capital (equity + debt) of an asset, project, or company.
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