When calculating a firm's cost of capital, all of the following are true except that * 1 point The cost of capital of a firm is the weighted average cost of its various financing components

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When calculating a firm's cost of capital, all of the following are true except that *

1 point

The cost of capital of a firm is the weighted average cost of its various financing components.

 

The calculation of the cost of capital should focus on the historical costs of alternative forms of financing rather than market or current costs.

 

Costs of debt should be expressed as after-tax costs.

 

The time value of money should be incorporated into the calculations.