WACC = E D+E TE + D TD D+E - D D+E DTC,

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Please answer the question attached in the picture below.

In the equation
WACC = DETE+D+ED-DETDTC.
the term
a.
O b.
C.
O d.
Е
D
D+E
TDTC represents:
The interest tax shield each year.
The present value of the future interest payments.
The reduction due to the interest tax shield.
The present value of the interest tax shield.
Transcribed Image Text:In the equation WACC = DETE+D+ED-DETDTC. the term a. O b. C. O d. Е D D+E TDTC represents: The interest tax shield each year. The present value of the future interest payments. The reduction due to the interest tax shield. The present value of the interest tax shield.
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