Question
Which of the following is a component of WACC whose after-tax cost is lower than its pre-tax cost: Group of answer choices a- Preferred stock
Which of the following is a component of WACC whose after-tax cost is lower than its pre-tax cost:
Group of answer choices
a- Preferred stock
b-Common stock
c-Debt Derivative
d-stock Leasing
The weights in a companys weighted average cost of capital should be based on the: Group of answer choices a-Average debt and equity levels the industry had in the last 10 years b-Current levels of industry average debt and equity c-Average debt and equity levels the company had in the last 10 years d-Current levels of company debt and equity e-Debt and equity levels the company plans to have in the future
XYZ, Inc. plans to issue some $60 par preferred stock with a 5% dividend. A similar stock is selling on the market for $80. XYZ must pay flotation costs of 6% of the issue price. XYZ's cost of the preferred stock is __%. Group of answer choices 4.74 3.99 7.09 6.25 8.42
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