Which of These Makes This a True Statement? the WACC

question 2

Multiple Choice

Which of these makes this a true statement? The WACC formula

• A) is not impacted by taxes.
• B) uses the after-tax costs of capital to compute the firm's weighted average cost of debt financing.
• C) uses the pre-tax costs of capital to compute the firm's weighted average cost of debt financing.
• D) focuses on operating costs only to keep them separate from financing costs.

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Definitions:

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone by having members write down their ideas and then discuss them collectively.

Main Motions

Fundamental proposals or suggestions put forward for discussion or voting to initiate action within a formal meeting or assembly context.

Central Issues

Key or primary topics, problems, or concerns that are at the heart of a discussion or situation.

Incidental Motions

Procedural motions in parliamentary procedure that address incidental questions of procedure arising out of other motions or business.