Consider the Following Equation: Rwacc = RE

question 81

Multiple Choice

Consider the following equation: rwacc = rE + rD(1 - τc)
The term rD(1 - τc) in this equation is:

• A)the required rate of return on debt.
• B)the dollar amount of equity.
• C)the after-tax required rate of return on debt.
• D)the required rate of return on equity.

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