Which of the Following Equations Is INCORRECT

question 59

Multiple Choice

Which of the following equations is INCORRECT?

• A) V_L = V_U +
• B) V_L = V_U + τ_cD
• C) r_wacc = r_E + r_D - r_Dτ_c
• D) r_wacc = r_E + r_D(1 + τ_c)

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Definitions:

Certificate of Limited Partnership

A legal document filed with a state government to establish the existence of a limited partnership.

Secretary of State

Refers to a senior official in the federal government of the United States who heads the Department of State, primarily responsible for foreign affairs and diplomacy.

LLLPs

Limited Liability Limited Partnerships, a form of business organization that offers both general and limited partners limited liability protection.

General Partner

A partner in a partnership who has unlimited liability and is responsible for managing the business.