For a company that pays no corporate taxes, its WACC will be equal to:

Name: For a company that pays no corporate taxes, its WACC will be equal to:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The Weighted Average Cost of Capital (WACC) for a company that pays no corporate taxes will be equal to the expected return on its assets, as it reflects the overall return the company needs to generate to support its overall capital structure without the tax shield effect on debt.

For a Company That Pays No Corporate Taxes, Its WACC