Weighted average cost of capital ( WACC ) has been used as discount interest rate or a hurdle rate to evaluate company's investment project . Which following statement ? WACC is applicable only to firms that issue both common stock and preferred stock B. If you have both the dividend growth model and the CAPM's costs of equity you shoull use the higher of the two estimates when computing WACC . O CA decrease in a firm's WACC will increase the attractiveness of the firm's investment options valued by net present value . OD . The after - tax cost of debt increases when the market price of a bond increases .