Which of the following should not be considered when calculating a firm's WACC?
A) Cost of preferred stock
B) After-tax cost of bonds
C) Cost of common stock
D) Cost of carrying inventory

Question

Quizplus · Accepted Answer

The cost of carrying inventory is not a factor in calculating a firm's WACC. WACC includes the cost of financing the firm's operations, which includes the cost of preferred stock, after-tax cost of bonds, and cost of common stock.

Which of the Following Should Not Be Considered When Calculating