The weighted average cost of capital:

a. Adjusts the cost of preferred stock for taxes

b. Is not the rate used to compute the NPV

C. Is different from the hurdle rate for a project

d. Equals the sum of the after-tax costs of each source of financing multiplied by the associated capital structure weight.

Which is True:

A. Whenever a new product increases sales of the same company's existing products, opportunity cost occur

b. Decrease in working capital accounts at the end of a project represent a recovery of earlier costs

c. A synergy loss occurs when a firm uses an owned asset to support a new project