2572. Average rate of return which is required by all investors of company is classified as

extrinsic cost of capital
weighted average cost of capital
mean cost of capital
standard cost of cash
✅ The correct answer is B.
Average rate of return which is required by all investors of company is classified as weighted average cost of capital. The weighted average cost of capital (WACC) is a calculation of a firm’s cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

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