For a Company That Pays No Corporate Taxes, Its WACC

question 108

Multiple Choice

For a company that pays no corporate taxes, its WACC will be equal to:

• A) the expected return on it assets.
• B) the expected return on its debt.
• C) the total value of its assets.
• D)the expected return on its equity.

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Definitions:

Marginal Products

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Sales Clerks

Employees in retail stores responsible for assisting customers, conducting transactions, and maintaining the arrangement of goods.

Customers Served

A measure of how many clients or customers a business, organization, or service has provided for in a given period.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.