Define each of the following terms: a. Weighted average cost of capital, WACC; after-tax cost of debt, rd(1  T) b. Cost of preferred stock, rps; cost of common equity or cost of common stock, rs c. Target capital structure d. Flotation cost, F; cost of new external common equity, r

Refers to the capital recovery factor O (F/A,i,n) O (P/A,i,n) O (A/F,i,n) O (A/Pi,n)

What is WACC (select all that are true)? Group of answer choices Rd (1-Tc) * D/V + Re * E/V Weighted Average Cost of Capital For a firm overall, it is based on the riskiness of the firm's assets While it is generally estimated by looking at the right-hand-side of the balance sheet, it is largely driven by the left-hand-side (i.e., assets) It is the amount that equity holders demand for an investment in a firm It is the amount that debt holders demand for a loan made to the firm

Use the following information to answer the following question(s). a) What is the percentage of common stock in Sumitomo's weighted average cost of capital? b) What is the percentage of debt in Sumitomo's weighted average cost of capital? c) What is the percentage of preferred stock in Sumitomo's weighted average cost of capital? d) What is the total capital that should be used in computing the weights for Sumitomo's WACC?