Which One of the Following Statements Is Incorrect Concerning the Equity

question 20

Multiple Choice

Which one of the following statements is incorrect concerning the equity component of the WACC?

• A) The value of retained earnings is excluded.
• B) Market values should be used in the calculations.
• C) Preferred equity is a separate component of WACC.
• D)There is a tax shield on the dividends paid.

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