TB MC Qu. 18-28 If a firm has preferred stock... If a firm has preferred stock, the after-tax weighted average cost of capital (WACC) equals: Multiple Choice O O rD(D/V) + rp(P/V) + rE(E/V); (where V = D + P + E). rD(1 - Tc)(D/V) + rp (P/V) + re(E/V); (where V = D+P+E). rD(D/V) + (1 - Tc)[rp(P/V) + rE(E/V)]; (where V = D+P+E). (1 - Tc)[rp(D/V) + rp(P/V) + TE(E/V)]; (where V = D+P+E).

(not the bottom answer)

TB MC Qu. 18-28 If a firm has preferred stock... If a firm has preferred stock, the after-tax weighted average cost of capital (WACC) equals: Multiple Choice rD(D/V)+rP(P/V)+rE(E/V);( where V=D+P+E) rD(1TC)(D/V)+rP(P/V)+rE(E/V);( where V=D+P+E) rD(D/V)+(1TC)[rP(P/V)+rE(E/V)];( where V=D+P+E). (1TC)[rD(D/V)+rP(P/V)+rE(E/V)];( where V=D+P+E)