QUESTION 8

which of the following statements are true (Multiple Answers are correct - choose all that are correct!)

a. We should focus our analysis on before-tax capital, since bondholder focus on before tax cash flows.

b. We should focus our analysis on after-tax capital since stockholder focus on after tax cash flows.

c. After tax cost of debt can be written as rd(1-t)

d. WACC can be considered as a hurdle rate to gauge the return on invested capital