In order to calculate the present value of debt tax savings, the _______ is used as the discount rate.
A) WACC
B) risk-free rate
C) required rate of return on debt
D) none of the above
Answer: C
In order to calculate the present value of debt tax savings, the _______ is used as the discount rate.
A) WACC
B) risk-free rate
C) required rate of return on debt
D) none of the above
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.