Which of the Following Is a Correct Formula for Calculating

question 101

Multiple Choice

Which of the following is a correct formula for calculating the weighted average 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

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Definitions:

Fats

Organic compounds that are made up of glycerol and fatty acids, serving as a major energy source and important for various bodily functions.

Crown

The part of a tooth that is visible above the gum line, or the top part of a plant including the branches and leaves.

Tooth

A hard, calcified structure found in the jaws of many vertebrates, used for biting and chewing food.

Pepsin

An enzyme produced in the stomach that initiates digestion of protein.