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The After-Tax Weighted Average Cost of Capital (WACC)is Given by (Corporate

Question 42

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)

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