Question
Which of the following statements is incorrect? Group of answer choices We choose the yield to maturity on the publicly traded bonds when estimating the
Which of the following statements is incorrect?
Group of answer choices
We choose the yield to maturity on the publicly traded bonds when estimating the cost of preferred stock to use in the WACC.
All the answers are correct except one.
We choose the yield to maturity on the publicly traded bonds when estimating the cost of debt to use in the WACC.
When estimating the cost of debt capital for a firm, we are primarily interested in the cost of long-term debt.
The current cost of long-term debt if available is the appropriate cost of debt for WACC calculations.
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