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    Principles of Corporate Finance Study Set 5
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    Exam 9: Risk and the Cost of Capital
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    The Weighted Average Cost of Capital (WACC) on an After-Tax
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The Weighted Average Cost of Capital (WACC) on an After-Tax

Question 37

Question 37

True/False

The weighted average cost of capital (WACC) on an after-tax basis is calculated as: WACC = (rD) (1 - TC ) (D/V) + (rE) (E/V) where: V = D + E

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