Weighted Average Cost of Capital is generally denoted

The correct answer is: A. kA

Weighted average cost of capital (WACC) is a measure of a company’s cost of capital for a given project or investment. It is calculated by taking a weighted average of the costs of each type of capital a company uses, such as debt, equity, and preferred stock.

The WACC is used to calculate the discount rate for a company’s cash flows, which is used to determine the net present value (NPV) of a project or investment. The NPV is a measure of the profitability of a project or investment, and it is used to decide whether or not to undertake the project or investment.

The WACC is a critical tool for financial managers, as it allows them to make informed decisions about how to finance their company’s projects and investments.

Here is a brief explanation of each option:

• Option A: kA is the correct answer. kA stands for “weighted average cost of capital.”
• Option B: kW is not the correct answer. kW stands for “weighted average cost of work.”
• Option C: k0 is not the correct answer. k0 stands for “initial cost.”
• Option D: kC is not the correct answer. kC stands for “capital cost.”