Question
The WACC is the minimum return a company needs to earn to satisfy Blank______.
Multiple select question.
its bondholders
its stockholders
the SEC
the exchange on which its stock is traded
Multiple select question.
its bondholders
its stockholders
the SEC
the exchange on which its stock is traded
Answers
GPT-4o mini
The WACC (Weighted Average Cost of Capital) is the minimum return a company needs to earn to satisfy:
- **its bondholders**
- **its stockholders**
These two groups are essential stakeholders, as bondholders are interested in receiving interest payments and the return of their principal, while stockholders expect returns in the form of dividends and capital appreciation. The SEC and the exchange do not directly relate to a company's required returns in the same way.
- **its bondholders**
- **its stockholders**
These two groups are essential stakeholders, as bondholders are interested in receiving interest payments and the return of their principal, while stockholders expect returns in the form of dividends and capital appreciation. The SEC and the exchange do not directly relate to a company's required returns in the same way.