Quiz Ch 09 – T/F After-Tax WACC Computation Formula

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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True or false: The after-tax calculation of the weighted average cost of capital (WACC) is given by WACC = (rD) (1 − TC ) (D/V) + (rE) (E/V), with V = D + E.

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  • Search Terms: ⊚ true ⊚ false ( (d/v) (e/v), (rd) (re) (wacc), ) + = after-tax an as average basis, calculates capital cost d e. of on one tc the v wacc weighted where −
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