With regard to the formula WACC = × Re + × Rd × (1 - Tc), which of the statements below is FALSE?
A) Tc is the corporate tax rate.
B) is the equity to firm value ratio.
C) Re is the cost of equity.
D) Rd × (1 - Tc) is the before-tax cost of debt.
Answer: D
Explanation: D) Rd × (1 - Tc) is the AFTER-TAX cost of debt.
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