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Which of the Formulations Below Expresses the Weighted Average Cost EV\frac { E } { V }

Question 39

Multiple Choice

Which of the formulations below expresses the weighted average cost of capital (WACC) formula?


A) WACC = EV\frac { E } { V } × Re + DV\frac { D } { V } × Rd × (1 - Tc)
B) WACC = DV\frac { D } { V } × Re + EV\frac { E } { V } × Rd × (1 - Tc)
C) WACC = EV\frac { E } { V } × Re × (1 - Tc) + DV\frac { D } { V } × Rd
D) WACC = EV\frac { E } { V } × Rd + DV\frac { D } { V }

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