The after-tax weighted average cost of capital (WACC) is calculated as:
A) WACC = rD (D/V) + rE (E/V) ; (where V = D + E)
B) WACC = rD (1 - TC) (D/V) + rE (E/V) ; (where V = D + E)
C) WACC = rD (D/V) + rE (1 - TC) (E/V) ; (where V = D + E)
D) None of the above
Correct Answer:
Verified
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