A) Preference shares are given more weight age
B) Cost of issue is considered
C) Tax factor is ignored
D) Risk factor is ignored
✅ ANSWER: B
While calculating weighted average cost of capital cost of issue is considered. Weighted average cost of capital ( WACC) is the average after-tax cost of a company’s various capital sources used to finance the company.
While calculating weighted average cost of capital cost of issue is considered. Weighted average cost of capital ( WACC) is the average after-tax cost of a company’s various capital sources used to finance the company.