单选题
In calculating the weighted average cost of capital (WACC), which of the following statements is least likely correct? A. The cost of preferred equity capital is the preferred dividend divided by the price of preferred shares. B. The cost of debt is equal to one minus the marginal tax rate multiplied by the coupon rate on outstanding debt. C. The cost of common equity is equal to the rate of return stockholders require on the firm's common stock.
【正确答案】
B
【答案解析】 After-tax cost of debt=bond yield-tax
savings=kd-kd=kd(1-t).