Q256
While calculating weighted average cost of capital _________.
A.
Preference shares are given more weight age
B.
Cost of issue is considered
AnswerC.
Tax factor is ignored
D.
Risk factor is ignored
Answer: Option B
Solution
Answer: Option B
Solution:
While calculating weighted average cost of capital cost of issue is considered. Weighted average cost of capital ( WACC) is the average after-tax cost of a company's various capital sources used to finance the company.