What are meanings of weights in wacc calculation

Reference no: EM13283475

Which of the following statements is false?

A) If the bond trades at a discount, and investor who buys the bond will earn a return both from receiving the coupons and from receiving a face value that exceeds the price paid for
the bond.
B) Most coupon bond issuers choose a coupon rate so that the bonds will initially trade at, or very
near to, par.
C) Coupon bonds always trade for a discount.
D) At any point in time, changes in market interest rates affect a bond's yield to maturity and its price.

What are meanings of weights in WACC calculation?

Why we think the capital from retained earnings is not free? When we compute the cost of this type of capital, the influence of taxation is considered or not? Explain.

Reference no: EM13283475

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