The correct answer is A. weighted cost of capital.
The weighted average cost of capital (WACC) is a measure of a company’s overall cost of capital, taking into account the different types of financing it uses. It is calculated by weighting the cost of each type of financing by its proportion of the company’s total capital.
The cost of preferred stock is one of the components of WACC. Preferred stock is a type of equity that has a fixed dividend rate. The cost of preferred stock is calculated by taking the dividend rate and dividing it by the market price of the preferred stock.
The transaction cost of preferred stock is the cost of issuing and selling preferred stock. This cost includes the fees paid to investment bankers and lawyers. The transaction cost of preferred stock is not included in WACC.
The financing of preferred stock is the process of raising money by issuing preferred stock. This process involves finding investors who are willing to buy preferred stock. The financing of preferred stock is not included in WACC.