When calculating the weighted average cost of capital which


1. When calculating the weighted average cost of capital, which of the following has to be adjusted for taxes?

A. Common stock B. Retained earnings C. Debt D. Preferred stock

2. An increase in ________ will increase the cost of common equity.

A. the expected growth rate of dividends

B. the risk-free rate

C. the dividend

D. both A and B

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Financial Management: When calculating the weighted average cost of capital which
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