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Which of the following statements about the cost of capital is(are) not correct? 1. A company's target capital structure (debt, common stock and preferred stock)
Which of the following statements about the cost of capital is(are) not correct? 1. A company's target capital structure (debt, common stock and preferred stock) affects its weighted average cost of capital (WACC). II. If a company's tax rate increases, then, all else equal, its weighted average cost of capital will increase. III. Higher dividend payment can increase the weighted average cost of capital. A) 11 OB) III C) None of them OD) II and III OE) I and 11
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