When weighted average cost of capital wacc is used to value


When weighted average cost of capital (WACC) is used to value a levered firm, the interest tax shield is:

a. ignored

b. considered by deducting the interest payment from the cash flows.

c. automatically considered because the after-tax cost of debt is used in the WACC formula. or

d. none of these

Request for Solution File

Ask an Expert for Answer!!
Financial Management: When weighted average cost of capital wacc is used to value
Reference No:- TGS01263198

Expected delivery within 24 Hours