A firm\'s capital structure consists of which of the following? A) Common stock

Question

A firm's capital structure consists of which of the following?

A) Common stock

B) Preferred stock

C) Bonds

D) All of the above

133) Which of the following must be adjusted for the firm's tax rate when estimating the

weighted average cost of capital WACC?

A) Cost of common equity

B) Cost of preferred stock

C) Cost of debt

D) All of the above

134) Which of the following would NOT be considered in calculating a firm's cost of capital?

A) Bonds

B) Accounts payable

C) Preferred Stock

D) common stock

Typical steps in the financial planning process include:

A) preparing a sales forecast.

B) analyzing cost data.

C) estimating tax expense.

D) all of the above.

Explanation / Answer

1.

Common stock, preferred stock and bonds all are sources of finance. Each company can have all these three sources in its capital structure.

Hence, Correct option is (D)

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