Which of the following is a correct formula for calculating the cost of capital?
A) WACC = weighted after-tax cost of debt + weighted cost of preferred stock + weighted cost of common stock
B) WACC = weighted after-tax cost of debt + weighted after-tax cost of preferred stock + weighted after-tax cost of common stock
C) WACC = (after-tax cost of debt + cost of preferred stock + cost of common stock ) /3
D) WACC = weighted cost of debt + weighted cost of preferred stock + weighted cost of common stock
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