For a Company That Pays No Corporate Taxes,its WACC Will

question 21

Multiple Choice

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

• A) the expected return on its 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:

Apathy

A lack of feeling, emotion, interest, or concern about something.

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one’s daily activities.

Manic-depressive

Manic-depressive is an older term for bipolar disorder, a mental health condition characterized by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).

Affective Disorder

A group of mood disorders in which a person's emotional state or mood is inconsistent with their circumstances and interferes with their ability to function.