When Taxes Are Ignored,which of the Following Can Be Used

question 72

Multiple Choice

When taxes are ignored,which of the following can be used to calculate the weighted-average cost of capital?

• A) Ratio of expected operating income to book value of all securities
• B) The expected return on equity times the debt-equity ratio
• C) Ratio of expected operating income to market value of all securities
• D) The required return on equity plus the required return on debt

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