2030 The weighted average cost of capital (WACC) is defined as the percent of the...
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2030 The weighted average cost of capital (WACC) is defined as the percent of the the firm's capital structure financed by equity multiplied by the firm's cost of equity PLUS the percent of the the firm's capital structure financed by debt multiplied by the firm's after tax cost of debt. Discussion question: 1. What is meant by the after-tax cost of debt? Why is the pre-tax cost of equity equal to the after-tax cost of equity
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