Question
Which of the following statements is most correct? Question 8 options: Since stockholders do not generally pay corporate taxes, corporations should focus on before-tax cash
Which of the following statements is most correct?
Question 8 options:
| Since stockholders do not generally pay corporate taxes, corporations should focus on before-tax cash flows when calculating the weighted average cost of capital (WACC). |
| When calculating the weighted average cost of capital, firms should include the cost of accounts payable. |
| When calculating the weighted average cost of capital, firms should rely on marginal costs rather than historical costs of capital. |
| Answers a and b are correct |
| None of the answers above is correct. |
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