The WACC Incorporates the Benefit of the ________ by Using

question 20

Multiple Choice

The WACC incorporates the benefit of the ________ by using the firm's ________ cost of capital for debt.

• A) interest tax shield; before-tax
• B) expense tax shield; before-tax
• C) interest tax shield; after-tax
• D) expense tax shield; after-tax

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Definitions:

Instinctual Satisfaction

The fulfillment of innate biological drives or needs, such as hunger or sexual desire.

Basically Good

A philosophical and psychological concept suggesting that human nature is fundamentally benevolent or positive.

Minimizing

The act or strategy of reducing something, especially negative impacts or aspects, to the smallest possible amount or degree.

Greater Emphasis

Placing more importance or stress on a particular aspect or element.