: Jun 11 at 1:52pm z Instructions Question 13 1 pts Which of the following statements is CORRECT? The bond-yield-plus-risk-premium approach is the most accurate and objective method for estimating a firm's cost of equity capital. The after-tax cost of debt that should be used as the component cost when calculating the WACC is the average after-tax cost of all the firm's outstanding debt. The cost of equity is generally harder to measure than the cost of debt because there is no stated, contractual cost number on which to base the cost of equity. The component cost of preferred stock is expressed as rp(1 - T). This follows because preferred stock dividends are treated as fixed charges, and as such they can be deducted by the issuer for tax purposes