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<p><span>a) the cost of common equity and the cost of debt</span></p> <p>b) t<span>he cost of common equity and the cost of preferred stock</span>c) <span>the cost of preferred stock and the cost of debt</span></p> <p>d) <span>the cost of common equity, the cost of preferred stock, and the cost of debt</span></p>
d) the cost of common equity, the cost of preferred stock, and the cost of debt
Overall Csot of Capital include Cost of Equity ( notional rate of Interest for Govt Bonds to be assumed for Cost of Equity as mostly Share holder equity is interest free) & Cost of Debt
D) is correct WACC = (Ke*equity+Kp*preference +Kd(1-t)*Debt) / (O.S+P.S+D)
Answer D correct answer
