Which is true about common stock and preferred stock
Common stock does not allow voting rights for the shareholder
Preferred stock and common stock represent ownership in a Company
For both, the investors return is tied to the performance of the Company and may result in a gain or loss
All of the Above
Both b and c
- A Company has debt of 40% and equity of 60%. The cost of debt is 8% and the cost of equity is 6%. The risk free rate is 2%, beta is 1.2 and the marginal tax rate is 40%. What is the Company’s cost of debt? What is the Company’s cost of equity? What is the WACC?