Cost which is used to calculate weighted average cost of capital is classified as

A weighted cost of capital
B component cost of preferred stock
C transaction cost of preferred stock
D financing of preferred stock

Correct Answer: component cost of preferred stock

Cost which is used to calculate weighted average cost of capital is classified as component cost of preferred stock. Cost of preferred stock is the rate of return required by holders of a company's preferred stock.

Related Questions

In weighted average cost of capital, cost of capital which is risk adjusted and developed for each category of
Profit forgone by capital investment in inventory rather than investment of capital to somewhere else is classified as
Which of the following is not a weighted code?

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