Which of the Following Is a True Statement Regarding the Appropriate

question 76

Multiple Choice

Which of the following is a true statement regarding the appropriate tax rate to be used in the WACC?

• A) One would use the marginal tax rate that the firm paid the prior year.
• B) One would use the average tax rate that the firm paid the prior year.
• C) One would use the weighted average of the marginal tax rates that would have been paid on the taxable income shielded by the interest deduction.
• D) One would use the marginal tax rates that would have been paid on the taxable income shielded by the interest deduction.

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A prefix meaning toward or in the direction of, often used in medical terms.

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Prefix

An affix placed before a word to modify its meaning.