Which of the following statements is correct? The best method to use when estimating risk-free interest rate is the weighted average cost of capital approach. All the answers are correct. The cost of debt for a firm is a weighted average of the costs of the different types of equity financing used by the firm We choose the yield to maturity on the publicly traded bonds when estimating the cost of debt to use in the WACC. Right-hand side of the accounting balance sheet shows how the firm's assets were reinvested, Question 16 1 pts Which of the following statements is incorrect? Unsystematic risk can be eliminated by holding a diversified portfolio According to the U.S. tax code, preferred and common shares are not considered debt and, thus, do not benefit from an interest deduction A firm's cost of preferred stock is the same as its dividend yield. All the answers are correct except one. The difference between the expected return on the market and the risk-free rate is known as the beta