Which of the following statements is CORRECT? A. The WACC is calculated using after-tax costs for all components. B. The after-tax cost of debt usually exceeds the after-tax cost of preferred stock. C. For a given firm, the after-tax cost of preferred stock is always more expensive than the after-tax cost of common equity. D. The WACC that should be used in capital budgeting is the firms marginal, before-tax cost of capital.

Casey Motors recently reported the following information: Net income = $300,000. Tax rate = 25%. Interest expense = $200,000.

What's the company's after-tax operating income?

A. $500,000 B. $450,000 C. $ 375,000 D $350,000 E $100,000