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    Exam 18: Capital Budgeting and Valuation With Leverage
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    Consider the Following Equation: Rwacc = RU - τCdrD
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Consider the Following Equation: Rwacc = RU - τCdrD

Question 78

Question 78

Multiple Choice

Consider the following equation: rwacc = rU - τcdrD
The term rU in this equation is:


A) the firm's unlevered cost of debt.
B) the firm's cost of debt.
C) the project's unlevered cost of capital.
D) the project's debt to value ratio.

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