Question: Read Section 10-2 Basic Definitions in the Textbook and match each of the terms below - v rd(1-1) A. The average cost of raising new

Read Section 10-2 Basic Definitions in the Textbook and match each of the terms below - v rd(1-1) A. The average cost of raising new funds based on the target amount of each funding source and the cost of each funding source- it is the overall cost of Vrd capital vrp B. cost of common stock vre rcs Is (your book differentiated between cost of common equity that is external or Wd Wp We that comes from retained earnings and has changed notation over the past WACC 5 years when you see any of these you should solve for the cost of equity) C. cost of preferred stock D. These represent the percentage of each financing type and composes the "target capital structure" E. After tax cost of debt F. before tax cost of debt
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