Cost of capital from all the sources of funds is called
A. Specific cost
B. Composite cost (Correct)
C. Implicit cost
D. Simple Average cost
Composite cost of capital is a company’s cost to finance its business, determined by, and also referred to as “weighted average cost of capital” or WACC. The calculation involves multiplying the cost of each capital component by its proportional weight and taking the sum of the results.