Which of the Formulations Below Expresses the Weighted Average Cost $\frac { E } { V }$

question 39

Multiple Choice

Which of the formulations below expresses the weighted average cost of capital (WACC) formula?

• A)WACC = \(\frac { E } { V }\) × R_e + \(\frac { D } { V }\) × R_d × (1 - T_c)
• B)WACC = \(\frac { D } { V }\) × R_e + \(\frac { E } { V }\) × R_{d ×} (1 - T_c)
• C)WACC = \(\frac { E } { V }\) × R_{e ×} (1 - T_c) + \(\frac { D } { V }\) × R_d
• D)WACC = \(\frac { E } { V }\) × R_d + \(\frac { D } { V }\)

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