In A World Of Corporate Taxes Only Show That The Wacc Can Be Written As Wacc Ru

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In a world of corporate taxes only, show that the WACC can be written as WACC = RU * [1 – Tc(D/V)].

Question:In a world of corporate taxes only, show that the WACC can be written as WACC = RU * [1 Tc(D/V)].Solution:WACC = RU * [1 – Tc(D/V)]Where asRu = cost of DebtTc = Tax rateD/V = Debt…

 
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