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Author Question: Which of the following best defines the cost of debt component of the WACC? (Read 398 times)

Scollins7

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on: Aug 7, 2023
Which of the following best defines the cost of debt component of the WACC?

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The cost of debt component of the WACC is equal to 1 plus the marginal tax rate divided by the average coupon rate on all outstanding debt.


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The cost of debt component of the WACC is equal to 1 plus the marginal tax rate multiplied by the average duration on the firm’s outstanding debt.


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The cost of debt component of the WACC is equal to 1 minus the marginal tax rate multiplied by the yield-to-maturity on the firm’s outstanding debt.


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The cost of debt component of the WACC is equal to 1 minus the marginal tax rate divided by the yield-to-maturity on all outstanding debt.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Scollins7 on Aug 7, 2023

hillard sane

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Scollins7

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Reply 2 on: Aug 7, 2023
Gracias!

aruss1303

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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