Question: The difference between the weighted average cost of capital ( WaCC ) and the asset cost of capital ( ahe called pretax Wacc ) is:
The difference between the weighted average cost of capital WaCC and the asset cost of capital ahe called pretax Wacc is:
A the weightedaverage cost of capital is based on the aftertax cost of equity and the precas WaNCC is basted on the atter tax cost of debe.
the weightedaverage cost of capital multiples the cost of equity and the cota of debe by eax rate and the pretax wacc does not.
C tho wolghtod averago cost of capltat muktiplos the cogt of detor by ittax ratel and ehe preluc forct does noe.
D the weightedaverage cost of capital multiplies the component costs of equity and diber by theur wetht in the capital structure, and the pretax Wotcc does no
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