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Which of the Following Is a Capital Component for the Purpose

Question 50

Multiple Choice

Which of the following is a capital component for the purpose of calculating the weighted average cost of capital in capital budgeting?


A) The after-tax cost of long-term debt
B) The after-tax cost of common stock
C) The after-tax cost of preferred stock
D) The after-tax cost of retained earnings
E) The after-tax cost of new equity

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