Which of the following should NOT be considered when calculating a firm's WACC?
A) after-tax YTM on a firm's bonds
B) after-tax cost of accounts payable
C) cost of newly issued preferred stock
D) cost of newly issued common stock

Question

Quizplus · Accepted Answer

The after-tax cost of accounts payable is not a component of calculating a firm's WACC, as it is not a source of long-term financing. The other options listed are all relevant when determining WACC.

Which of the Following Should NOT Be Considered When Calculating