Arrange the following steps involved in calculating the cost of capital in the correct sequence:
A. Determining the cost of debt.
B. Estimating the cost of equity.
C. Calculating the weighted average cost of capital (WACC).
D. Assigning weights to the various sources of capital.
E. Determining the cost of preferred stock.
F. Determining the cost of retained earnings.
G. Calculating the cost of capital for each source.
Choose the correct sequence of steps:
1
D, A, E, B, F, G, C
2
C, A, E, B, F, G, D
3
D, A, E, F, B, G, C
4
D, E, A, B, F, C, G