When computing wacc you should use the pretax yield to, Ask an Expert

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When computing WACC, you should use the: pretax yield to maturity because it considers the current market price of debt. aftertax cost of debt because interest is tax deductible. pretax cost of debt because it is the actual rate the firm is paying bondholders. current yield because it is based on the current market price of debt. pretax cost of debt because most corporations pay taxes at the same tax rate.

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Financial Management, Finance

Category:- Financial Management
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