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Andrei [34K]
3 years ago
9

When calculating the afterminustax weighted average cost of capital​ (WACC), which of the following costs is adjusted for taxes

in the​ equation?A. The before−tax cost of preferred stock
B.The before−tax cost of equity
C.The after−tax cost of debt
D.The before−tax cost of debt
Business
1 answer:
sergey [27]3 years ago
6 0

Answer:

The before-tax cost of debt is adjusted for tax in the computation of weighted average cost of capital.

The correct answer is  D

Explanation:

In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.

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3 years ago
Suppose that you open your own business and earn an accounting profit of​ $35,000 per year. When you started your​ business, you
Aleonysh [2.5K]

Answer:

B. minus​$2,000.

Explanation:

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3 years ago
How do corporations raise money and resources to expand? Select THREE answers.
Vladimir [108]

Correct answer choices are :

A) They request a bank loan.

D) They agree to sell stocks.

E)  They issue bonds.

Explanation:

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