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Author Question: Which one of the following statements is correct concerning the weighted average cost of capital (WACC)? (Read 175 times)

rayancarla1

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on: Apr 25, 2021
Which one of the following statements is correct concerning the weighted average cost of capital (WACC)?
◦ The pre-tax rate of return on the debt is the rate that is relevant to the computation of the WACC.
◦ When computing the WACC, the weight assigned to the preferred stock is equal to the coupon rate multiplied by the par value assigned to the preferred stock.
◦ A firm's WACC will decrease as their corporate tax rate decreases.
◦ The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share.
◦ The weight of the debt can be based on the face value of the bond issue(s) outstanding multiplied by the quoted price(s) when expressed as a percentage of the face value.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by rayancarla1 on Apr 25, 2021

vickyvicksss

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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rayancarla1

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)

covalentbond

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Reply 3 on: Yesterday
Gracias!

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