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When calculating the WACC, why is it that only debt has an adjustment factor (1-T)? O a. Because debt is offset by equit
Posted: Tue Jan 18, 2022 1:00 pm
by answerhappygod
- When Calculating The Wacc Why Is It That Only Debt Has An Adjustment Factor 1 T O A Because Debt Is Offset By Equit 1 (38.53 KiB) Viewed 58 times
When calculating the WACC, why is it that only debt has an adjustment factor (1-T)? O a. Because debt is offset by equity from investors. O b. Because the interest on debt is tax deductible. O c. Because dividends aren't paid on debt. O d. Because debt is discounted as a cost of capital. O e. Because companies pay more taxes on debt used to acquire capital