alleryStart learning →WACC needs the costs of debt, equity and
Atrade payables
Bclosing stock
Cpreference capital
Dbank balances
Answer & Solution
Correct answer: C. preference capital
Preference capital is a separate financing source with its own cost in the weighted average.
Keep practising Cost of Capital Basics
Browse all Cost of Capital Basics questions for CA Inter, or explore more Financial Management topics.
Related questions
If the tax rate rises, other things equal, after-tax Kd willShareholders are rewarded with dividends andIf a firm's risk rises, its cost of capitalA firm's current cost of equity, unlike its cost of debt, isThe quality of accounting information can affect a firm'sA schedule of cost per rupee of new capital against amount raised is theA marginal cost of capital schedule first ranks projects byWith no tax or bankruptcy, Modigliani and Miller show levered and unlevered firm values ar