The After-Tax Weighted Average Cost of Capital (WACC) Is Calculated

question 7

Multiple Choice

The after-tax weighted average cost of capital (WACC) is calculated using the formula:

• A) WACC = (r_D) (D/V) + (r_E) (E/V) where: V = D + E
• B) WACC = (r_D) (1 - TC ) (D/V) + (r_E) (E/V) where: V = D + E
• C) WACC = (r_D) (D/E) + (r_E) (E/D)
• D) none of the above

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