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The Weighted Average of the Firm's Costs of Equity, Preferred

Question 261

Multiple Choice

The weighted average of the firm's costs of equity, preferred stock, and after tax debt is the:


A) Reward to risk ratio for the firm.
B) Expected capital gains yield for the stock.
C) Expected capital gains yield for the firm.
D) Portfolio beta for the firm.
E) Weighted average cost of capital (WACC)

Correct Answer:

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