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) formula takes into account the after-tax cost of debt. Since interest payments on debt are tax-deductible, a higher tax rate will result in a lower after-tax cost of debt, which in turn will lower the WACC. So, the WACC is dependent on the firm's tax rate.

The Weighted Average Cost of Capital for a ﬁRm Is