Q429
Cost which is used to calculate weighted average cost of capital is classified as
A.
weighted cost of capital
B.
component cost of preferred stock
AnswerC.
transaction cost of preferred stock
D.
financing of preferred stock
Answer: Option B
Solution
Answer: Option B
Solution:
Cost which is used to calculate weighted average cost of capital is classified as component cost of preferred stock. Cost of preferred stock is the rate of return required by holders of a company's preferred stock.