Question Completion Status: (CHAPTER 14) For a large corporation, the annual cost of running business is called the Weighted Average Cost of Capital for "WACC"). It is the average or more precisely, the weighted average of three things: cost of equity, cost of preferred stock, and cost of debt (a) Cost of equity is nothing but the .. che Average Cost of apital 1 rate of return to investors buying common stock shares 2 rate of return on preferred stock shares 3 yield to maturity 4 most recent dividend paid on each share of common stock (b) Cost of debt lot's calculate it! A corporation issued 17-year bonds 2 years ago at a coupon rate of 98% of par value. The corporation's cost of debt is The bonds make semiannual payments. These bonds currently sell for 1 8.2371 2 8.2345 Moving to another c on will save this respons