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The difference between the weighted-average cost of capital (WACC) and the pre-tax (unlevered) WACC is

A. the weighted-average cost of capital multiplies the cost of debt by (1-tax rate) and the pre-tax WACC does not.

B. the weighted-average cost of capital is based on the after-tax cost of equity and the pre-tax WACC is based on the after-tax cost of debt.

C. the weighted-average cost of capital multiplies the component costs of equity and debt by their weight in the capital structure, and the pre-tax WACC does not.

D. the weighted-average cost of capital multiplies the cost of equity and the cost of debt by (1-tax rate) and the pre-tax WACC does not.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91559588

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