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marissa [1.9K]
3 years ago
15

Which of the following statements is CORRECT?

Business
1 answer:
vovikov84 [41]3 years ago
5 0

Answer:

Suppose a firm has been losing money and thus is not paying taxes, and this situation is expected to persist into the foreseeable future. In this case, the firm’s before-tax and after-tax costs of debt for purposes of calculating the WACC will both be equal to the interest rate on the firm’s currently outstanding debt, provided that debt was issued during the past 5 years.

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