The After-Tax Weighted Average Cost of Capital Is Determined By

question 13

Multiple Choice

The after-tax weighted average cost of capital is determined by:

• A) Multiplying the weighted average after tax cost of debt by the weighted average cost of equity
• B) Adding the weighted average before tax cost of debt to the weighted average cost of equity
• C) Adding the weighted average after tax cost of debt to the weighted average cost of equity
• D) Dividing the weighted average before tax cost of debt to the weighted average cost of equity

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product much faster than with individual craftsmanship.