When weighted average cost of capital wacc is used to value, Ask an Expert

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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

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Financial Management, Finance

Category:- Financial Management
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