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Question
Which of the following is a correct formula for calculating the cost of capital?A) WACC = weighted after-tax cost of debt + weighted cost of preferred stock + weighted cost of common stock
B) WACC = weighted after-tax cost of debt + weighted after-tax cost of preferred stock + weighted after-tax cost of common stock
C) WACC = (after-tax cost of debt + cost of preferred stock + cost of common stock )/3
D) WACC = weighted cost of debt + weighted cost of preferred stock + weighted cost of common stock
Answer
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Related questions
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The equivalent annual cost method is most appropriate in which of the following situations? In each case, assume that several mutually exclusive options are available.
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