1. 1. The Cost of Capitals Introduction required return on the applicable security the rates of return thot investor fequire on wonds, preferred stocks, and aifferent types of capital, and use this average cost for capital budgeting purposes. The firm's primary finandat objective is to cost of caoiram is often referred to as the shareholder valve, To do this, companies invest in projects that eam rate. When calculating the welghted average cost of capitat (WACC), cur concern is with capital that ont of capital, 50, the - interest-bearing debt, preferred stock, and common equity. and sccruals, which arise spontaneously from operations when capital budgeting projects are undertaken, are bot indoded as part of investor-supplied copital because they do not come directly trem investors. Which of the fellowing would be induded in the calculation of total invested capital? Choose the response that is most correct. a. Notes peyabin B. Taxas payatle c. Acoovota perabie d. Fraponses a and c would be induded in the calculation of total invested capital. e. None of the abcve wbudd be indudes in the calculation of total invested capital. The correct rescrinte is