Which of the following regarding the weighted-average cost of capital is true?  Group of answer choices  The tax effect of debt should be included in the calculation of the weighted-average cost of capital.  The tax effect of common stock dividends should be included in the calculation of weighted-average cost of capital.  Taxes do not affect the weighted-average cost of capital.  The tax effect of preferred stock dividends should be included in the calculation of weighted-average cost of capital

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following regarding the weighted-average cost of capital is true? 

Group of answer choices 

The tax effect of debt should be included in the calculation of the weighted-average cost of capital. 

The tax effect of common stock dividends should be included in the calculation of weighted-average cost of capital. 

Taxes do not affect the weighted-average cost of capital. 

The tax effect of preferred stock dividends should be included in the calculation of weighted-average cost of capital. 

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