微信扫一扫
实时资讯全掌握
| The Gearing Company has an after-tax cost of debt capital of 4 percent, a cost of preferred stock of 8 percent, a cost of equity capital of 10 percent, and a weighted average cost of capital of 7 percent. Gearing intends to maintain its current capital structure as it raises additional capital. In making its capital budgeting decisions for the average-risk project, the relevant cost of capital is: A. 4 percent. B. 7 percent. C. 8 percent. |