Multiple Choice
Which of the following regarding the weighted-average cost of capital is true?
A) The tax effect of preferred stock dividends should be included in the calculation of weighted-average cost of capital.
B) The tax effect of common stock dividends should be included in the calculation of weighted-average cost of capital.
C) The tax effect of debt should be included in the calculation of the weighted-average cost of capital.
D) Taxes do not affect the weighted-average cost of capital.
Correct Answer:
Verified
Correct Answer:
Verified
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