When One Uses the After-Tax Weighted Average Cost of Capital

question 79

Multiple Choice

When one uses the after-tax weighted average cost of capital (WACC) to value a levered firm, the interest tax shield is

• A)not accounted for by the use of the WACC.
• B)considered by deducting the interest payment from the cash flows.
• C)automatically considered because the after-tax cost of debt is included within the WACC formula.
• D)capitalized by the levered cost of equity.

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Definitions:

Step 1

Typically refers to the first stage in a 12-step recovery program, acknowledging powerlessness over addiction and the unmanageability of one's life.

Sponsorship Component

An element of certain recovery programs where more experienced members (sponsors) provide guidance and support to those newer to the recovery process.

Steps

Refers to the series of actions or procedures designed to achieve a specific goal or to systematically address a problem, often used in contexts such as therapeutic processes or solving mathematical problems.

Spiritual Version

An interpretation or practice of spirituality that is distinct or adapted to an individual's beliefs or way of life.