For a Firm That Has Both Debt and Equity in Its

Multiple Choice

For a firm that has both debt and equity in its capital structure,its financing cost can be represented by the weighted average cost of capital that is computed by:

A) weighing the pre-tax borrowing cost of the firm and the cost of equity capital, using the debt as the weight
B) weighing the after-tax borrowing cost of the firm and the cost of equity capital, using the capital structure ratio as the weight
C)
D) b and c