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The overall (weighted average) cost of capital is composed of a weighted average of _.

<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>

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Question ajoutée par Kamran Anjum , Head of Internal Audit , Rafhan Maize Products Company limited, Faisalabad, Pakistan, Ingredion Incorporated Gmbh
Date de publication: 2014/09/22
Ahmed Abdi Mahad
par Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

The overall cost of capital of a weighted average is composed of the cost of common equity, the cost of preferred stock and the cost of debt.

So, choice D, is the right answer

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

d) the cost of common equity, the cost of preferred stock, and the cost of debt

Waqar Yusuf Panvelkar
par Waqar Yusuf Panvelkar , CFO , Schlumberger Group Co

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

Mohamed Adel
par Mohamed Adel , Group Financial Manager , Alahly Sabbour real-estate Developments

D) is correct WACC =  (Ke*equity+Kp*preference +Kd(1-t)*Debt) / (O.S+P.S+D)

Utilisateur supprimé
par Utilisateur supprimé

Answer D is correct 

georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

Answer D correct answer

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