The weighted average cost of capital is determined by:
A) multiplying the weighted average after tax cost of debt by the weighted average cost of equity.
B) adding the weighted average before tax cost of debt to the weighted average cost of equity.
C) adding the weighted average after tax cost of debt to the weighted average cost of equity.
D) dividing the weighted average before tax cost of debt to the weighted average cost of equity.
E) dividing the weighted average after tax cost of debt to the weighted average cost of equity.
Correct Answer:
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