Which of the Following Is a Correct Formula for Calculating

question 56

Multiple Choice

Which of the following is a correct formula for calculating the cost of capital?

• A)WACC = weighted after-tax cost of debt + weighted cost of preference shares + weighted cost of ordinary shares
• B)WACC = weighted after-tax cost of debt + weighted after-tax cost of preference shares + weighted after-tax cost of ordinary shares
• C)WACC = (after-tax cost of debt + cost of preference shares + cost of ordinary shares )/3
• D)WACC = weighted cost of debt + weighted cost of preference shares + weighted cost of ordinary shares

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Definitions:

Muscular

Pertaining to or involving the muscles.

Nervous

Relating to the nervous system, or describing a state of anxiety or tension.

Skeletal

Relating to the framework of hard structures (bones) that support or protect the body's organs and provide structure.

Amoxicillin

A widely used antibiotic that belongs to the penicillin group, effective against a variety of bacterial infections.