Question

The after-tax weighted average cost of capital (WACC) is given by: (Corporate tax rate = TC )
A. WACC = (rD)(D/V) + (rE)(E/V)
B. WACC = (rD)(D/V) +[(rE )(E/V)/(1 - TC)]
C. WACC = [(rD)(D/V) + (rE)(E/V)]/(1 - TC)
D. WACC = (rD)(1 - TC)(D/V) + (rE)(E/V)

Answer

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