1. No tax adjustments are necessary for the computation of the costs of _______________and preferred stock. 2. The cost of________________ is higher than the cost of common stock because of...

1. No tax adjustments are necessary for the computation of the costs of _______________and preferred stock.

2. The cost of________________ is higher than the cost of common stock because of _________________involved in its sale.

3. The________________ approach to determining the cost of common stock is to add a_________________ to the firm’s own cost of long-term debt.

4. Two types of historical weights are used:____________ and_______________ .