Each of the following factors affects the weighted average cost of capital (WACC) equation. Which are factors that a firm can control?
A. Interest rates in the economy
B. Tax rates
C. The firm's dividend payout ratio
D. The general level of stock prices
Interest rates are set by the Bank, Tax rates by the Government, Stock Prices by demand from customers. The only factor that the company can control is its dividend payout ratio.
