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Which of the following correctly describe the computation of the firm's weighted average cost of capital (WACC)? I. (E/V) + ke + (D/V) + YTM
Which of the following correctly describe the computation of the firm's weighted average cost of capital (WACC)?
I. (E/V) + ke + (D/V) + YTM + (1 Tc) where Tc = corporate tax rate
II. (E/V) x ke x (1 Tc) + (D/V) x YTM
III. (E/V) x ke + (D/V) x YTM x (1 Tc)
IV. (E/V) + ke + (D/V) + YTM
Answers...
I only
II only
III only
IV only
I and III only
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