When Calculating the After-Tax Weighted Average Cost of Capital (WACC)

question 46

Multiple Choice

When calculating the after-tax weighted average cost of capital (WACC) , which of the following costs are adjusted for taxes in the equation?

• A) The before-tax cost of equity
• B) The before-tax cost of debt
• C) The before-tax cost of preferred stock
• D) The after-tax cost of debt

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