Acompany has a capital structure that includes 30 debts, 10 preferred stock, and 60% common stock. the before-tax cost of debt is 11%. the cost of preferred stock is 10.3%. the cost of common stock is 14.7%. new common stock sales cost approximately 16%. the marginal tax rate is 40%. according to the above information, what is the weighted average cost of capital for this company?
a. 10.3%
b. 11%
c. 11.8%
d. none of the above

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.