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Homework answers / question archive / Is it true? The after-tax cost of debt is used as the component cost when calculating the WACC because the cost of all company's debts and principal debt repayments is deducted from the company's taxable income ABC T T T Arial 3 (12pt) T

Is it true? The after-tax cost of debt is used as the component cost when calculating the WACC because the cost of all company's debts and principal debt repayments is deducted from the company's taxable income ABC T T T Arial 3 (12pt) T

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Is it true? The after-tax cost of debt is used as the component cost when calculating the WACC because the cost of all company's debts and principal debt repayments is deducted from the company's taxable income ABC T T T Arial 3 (12pt) T

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True

We should consider after tax cost of debt while calculating WACC because it has tax advantages associated with it.

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