Which of the Following Should NOT Be Considered When Calculating

question 90

Multiple Choice

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

• A) after-tax YTM on a firm's bonds
• B) after-tax cost of accounts payable
• C) cost of newly issued preferred stock
• D) cost of newly issued common stock

---

Definitions:

Instrumental

Relating to an action or tool that is a means to achieve an end or goal.

Heterosexual

A sexual orientation characterized by an enduring pattern of emotional, romantic, or sexual attractions exclusively to persons of the opposite sex.

Cultures of Honor

Social contexts where individuals place a high value on personal status, strength, and the willingness to use aggression to defend reputation.

Marital Violence

Acts of physical aggression and violence that occur between partners within the context of marriage.