The weighted average cost of capital for a firm is dependent upon the firm's tax rate.

Name: The weighted average cost of capital for a firm is dependent upon the firm's tax rate.
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The weighted average cost of capital (WACC) takes into account the cost of equity and the cost of debt. The cost of debt is affected by the firm's tax rate because interest payments on debt are tax-deductible, which lowers the effective cost of debt to the firm.

The Weighted Average Cost of Capital for a Firm Is