One Calculates the After-Tax Weighted Average Cost of Capital (WACC)

question 63

Multiple Choice

One calculates the after-tax weighted average cost of capital (WACC) as

• A)WACC = r_D (D/V) + r_E (E/V); (where V = D + E).
• B)WACC = r_D (1 - T_C)(D/V) + r_E (E/V); (where V = D + E).
• C)WACC = r_D (D/V) + r_E (1 - T_C)(E/V); (where V = D + E).
• D)WACC = (1 - T_C) × ( r_D (D/V) + r_E (E/V)); (where V = D + E).

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Definitions:

Customer Satisfaction

The measure of how products or services meet or exceed customer expectations.

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