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

question 44

Multiple Choice

The after-tax weighted average cost of capital (WACC) is calculated as:

• A) WACC = rD (D/V) + rE (E/V); (where V = D + E)
• B) WACC = rD (1 - TC)(D/V) + rE (E/V); (where V = D + E)
• C) WACC = rD (D/V) + rE (1 - TC)(E/V); (where V = D + E)
• D) None of the above

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Definitions:

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