Consider the Following Equation: R_wacc = R_E

question 84

Multiple Choice

Consider the following equation: r_wacc = r_E + r_D(1 - τ_c)
The term D in this equation is:

• A) the dollar amount of debt.
• B) the required rate of return on equity.
• C) the required rate of return on debt.
• D) the dollar amount of equity.

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