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While calculating weighted average cost of capital _________.

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: Option B

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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