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Which of These Makes This a True Statement? the WACC

Question 2

Multiple Choice

Which of these makes this a true statement? The WACC formula


A) is not impacted by taxes.
B) uses the after-tax costs of capital to compute the firm's weighted average cost of debt financing.
C) uses the pre-tax costs of capital to compute the firm's weighted average cost of debt financing.
D) focuses on operating costs only to keep them separate from financing costs.

Correct Answer:

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