increase in the yield to maturity of the firm's outstanding debt
decrease in the firm's tax rate.
Preferred stock, one of the equity forms, can be issued to lower a company's cost of capital because it is less expensive than common stock. Average Weighted Cost of Capital The weighted average cost of capital, or WACC, is one of the core ideas in corporate finance.
The Weighted Average Cost of Capital is also computed using the price of preferred shares. The Weighted Average Cost of Capital (WACC) of a company is a measure of its blended cost of capital, which includes equity and debt.
Corporate tax rates, the state of the economy, and market circumstances are some other outside variables that might impact WACC. The average after-tax cost of a company's multiple capital sources is known as the weighted average cost of capital (WACC). It consists of bonds, other debt, common stock, and preferred stock.
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