In the Notation of the Book,K = (1 - $\lambda$ )K_l

question 34

Multiple Choice

In the notation of the book,K = (1 - $\lambda$ ) K_l + $\lambda$ (1 - $\tau$ ) i Which of the following are correct?

• A)The weighted average cost of capital for a levered firm is K
• B)The tax rate is \(\tau\)
• C)The after-tax cost of debt capital is i
• D)All of the above

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