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The After-Tax Weighted Average Cost of Capital (WACC) Is Calculated

Question 7

Multiple Choice

The after-tax weighted average cost of capital (WACC) is calculated using the formula:


A) WACC = (rD) (D/V) + (rE) (E/V) where: V = D + E
B) WACC = (rD) (1 - TC ) (D/V) + (rE) (E/V) where: V = D + E
C) WACC = (rD) (D/E) + (rE) (E/D)
D) none of the above

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