Multiple Choice
The after-tax weighted average cost of capital (WACC) is given by: (Corporate tax rate = TC )
A) WACC = (rD) (D/V) + (rE) (E/V)
B) WACC = (rD) (D/V) +[(rE ) (E/V) /(1 - TC) ]
C) WACC = [(rD) (D/V) + (rE) (E/V) ]/(1 - TC)
D) WACC = (rD) (1 - TC) (D/V) + (rE) (E/V)
Correct Answer:
Verified
Correct Answer:
Verified
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