Which of the Following Should NOT Be Considered When Calculating

question 7

Multiple Choice

Which of the following should NOT be considered when calculating a firm's WACC?

• A) cost of preferred stock
• B) after-tax cost of bonds
• C) cost of common stock
• D) cost of carrying inventory

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Definitions:

°C

Degrees Celsius, a unit of temperature on the Celsius scale, where 0°C represents the freezing point of water, and 100°C its boiling point at sea level.

Atm

Standard atmosphere, a unit of pressure defined as 101,325 Pa; also used to denote the atmospheric pressure at sea level.

Volume

A metric for quantifying the three-dimensional space an object or gas occupies.

°C

A degree of Celsius, a scale and unit of measurement for temperature.