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Author Question: Which of the following best reflects the correct cost of debt used to calculate a firms WACC? (Read 38 times)

Gabby

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on: Aug 7, 2023
Which of the following best reflects the correct cost of debt used to calculate a firm’s WACC?

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The before-tax cost of debt, which is lower than the after-tax cost, is used as the component cost of debt for purposes of developing the firm’s WACC.


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The before-tax cost of debt, which is higher than the after-tax cost, is used as the component cost of debt for purposes of developing the firm’s WACC.


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The after-tax cost of debt, which is lower than the before-tax cost, is used as the component cost of debt for purposes of developing the firm’s WACC.


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The after-tax cost of debt, which is higher than the before-tax cost, is used as the component cost of debt for purposes of developing the firm’s WACC.

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

AarionnaH

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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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Gabby

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

Liddy

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Reply 3 on: Yesterday
Wow, this really help

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