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Other Fields Homework Help Finance Topic started by: Memphic on Nov 20, 2017



Title: The difference between the weighted-average cost of capital (WACC) and the pre-tax (unlevered) WACC ...
Post by: Memphic on Nov 20, 2017
The difference between the weighted-average cost of capital (WACC) and the pre-tax (unlevered) WACC is:
A) the weighted-average cost of capital is based on the after-tax cost of equity and the pre-tax WACC is based on the after-tax cost of debt.
B) the weighted-average cost of capital multiplies the cost of equity and the cost of debt by (1-tax rate) and the pre-tax WACC does not.
C) the weighted-average cost of capital multiplies the cost of debt by (1-tax rate) and the pre-tax WACC does not.
D) the weighted-average cost of capital multiplies the component costs of equity and debt by their weight in the capital structure, and the pre-tax WACC does not.


Title: Re: The difference between the weighted-average cost of capital (WACC) and the pre-tax (unlevered) ...
Post by: EgorGruzdev on Nov 20, 2017
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