Correct formula for calculating the cost of capital

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Reference no: EM131871329

1. Does the capital structure of a company consist of which of the following?

a. common stock

b. preferred shares

c. debt

d. all of the above

2. Which of the following should be adjusted for the company's tax rate when calculating the weighted average cost of capital WACC?

a. the cost of share capital

b. the cost of preferred shares

c. the cost of debt

d. all of the above

3. What is the correct formula for calculating the cost of capital?

Reference no: EM131871329

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