Which of the following statements about the corporate cost of capital is most correct?
The cost-of-capital estimate is a before-tax estimate.
The effective (after-tax) cost of debt to similar for-profit and not-for-profit businesses is roughly the same in most situations.
Preferred stock and short-term debt are never included in the cost-of-capital estimate.
The corporate cost-of-capital estimate is based on the cost of embedded (current) capital.
The corporate cost-of-capital estimate is based on the cost of embedded (current) debt coupled with the cost of newly issued equity.