Question
When weighted average cost of capital (WACC) is used to value a levered firm, the interest tax shield is: a. ignored b.considered by deducting the
When weighted average cost of capital (WACC) is used to value a levered firm, the interest tax shield is:
a. ignored
b.considered by deducting the interest payment from the cash flows.
c. automatically considered because the after-tax cost of debt is used in the WACC formula. or
d. none of these
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
