In an Economic Added Value calculation, the corporate charge for a division's investment is based on a weighted average of the after-tax interest rate on the firm's debt and the cost of the firm's equity.

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This statement is true. The corporate charge for a division's investment is calculated using the weighted average cost of capital (WACC), which is based on the after-tax cost of debt and the cost of equity.

In an Economic Added Value Calculation, the Corporate Charge for a Division's