||Before-Tax Cost of Debt
||Cost of Preferred Stock
||Cost of Common Equity Raised by Retaining Earnings
||Cost of Common Equity Raised by Issuing New Stock
|What does Preferred Stock and Debt have in common?
||Usually has no voting rights
|What does Preferred Stock and Equity have in common?
||Usually has no specific maturity date
|The cost of raising capital through retained earnings is _________ the cost of raising capital through new common stock.
|What factors cannot be controlled involving WACC Cost of Capital?
||The performance of index funds and interest rates in the economy
|If Expected Return is HIGHER than WACC (risk based cost), a firm should…
||Accept the Project