The weighted-average cost of capital:

A) blends the returns required by all suppliers of funds.
B) incorporates the firm's capital structure in its calculation.
C) is virtually never lower than the cost of debt nor higher than the cost of equity.
D) All of the above

Weighted-Average Cost

A calculation that takes into account the varying costs of items or resources, weighted by their relative importance or quantity.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which constitutes how a firm finances its overall operations and growth.

Equity

The value of ownership interest in an entity, encompassing stocks and assets minus liabilities.