Which of the Following Is Not Potentially Used in the Weighted

question 51

Multiple Choice

Which of the following is not potentially used in the weighted average cost of capital equation?

• A) cost of retained earnings
• B) weight of debt
• C) average corporate income tax rate
• D) marginal tax rate

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Definitions:

Bound By Contracts

A phrase indicating that parties are legally obligated to adhere to the terms outlined in a contract they have entered into.

Presumed

Accepted as true or valid based on the evidence until proven otherwise.

Primary Obligation

The main or fundamental duty that a party is required to perform under a contract.

Debtor

An individual or entity that owes money or other obligations to another party, known as the creditor.