Quiz Ch 19 – Treatment of Interest Tax Shield in After-Tax WACC Valuation

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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How is the interest tax shield treated when utilizing the after-tax weighted average cost of capital (WACC) for valuing a leveraged firm?

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  • Search Terms: a) (wacc) a accounted after-tax automatically average because by capital capitalized cash considered cost debt deducting equity. firm, flows. c) for formula. d) from included interest is is levered not of one payment shield tax the to use uses value wacc wacc. b) weighted when within
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