Why is the after-tax cost of debt, rather than its before-tax required rate of return, used to
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Why is the after-tax cost of debt, rather than its before-tax required rate of return, used to calculate the weighted average cost of capital?
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Answer The aftertax cost of debt is used to calculate the weighted average cost of capital WACC because it reflects the true cost of debt financing to ...View the full answer
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Related Book For
Intermediate Financial Management
ISBN: 9781337395083
13th Edition
Authors: Eugene F. Brigham, Phillip R. Daves
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