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The Average of a Company's Cost of Equity, Cost of Preferred

Question 24

Multiple Choice
The average of a company's cost of equity, cost of preferred, and aftertax cost of debt that is weighted based on the company's capital structure is called the:

The average of a company's cost of equity, cost of preferred, and aftertax cost of debt that is weighted based on the company's capital structure is called the:


A) reward-to-risk ratio.
B) weighted capital gains rate.
C) structured cost of capital.
D) subjective cost of capital.
E) weighted average cost of capital.

Correct Answer:

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