When computing the weighted average cost of capital, which of these are adjusted for taxes?
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Solution 1
The cost of debt is adjusted for taxes when computing the weighted average cost of capital. This is because interest expenses are tax-deductible, which effectively reduces the cost of debt. This tax shield is taken into account by multiplying the cost of debt by (1 - tax rate). The cost of equity, h Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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