The Cost of Capital for a Firm,R-WACC,in a Zero Tax

question 91

Multiple Choice

The cost of capital for a firm,R-WACC,in a zero tax environment is:

• A) equal to the expected earnings divided by market value of the unlevered firm.
• B) equal to the rate of return for that business risk class.
• C) equal to the overall rate of return required on the levered firm.
• D) is constant regardless of the amount of leverage.
• E) All of

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