Question

# Cost of capital from all the sources of funds is called ________.

A
specific cost
B
composite cost
C
implicit cost
D
simple average cost

Solution

## The correct option is B composite costComposite cost of capital is a company's cost to finance its business, determined by, and also referred to as "weighted average cost of capital" or $$WACC.$$ The calculation involves multiplying the cost of each capital component by its proportional weight and taking the sum of the results.Business Studies

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