Question

The WACC is the weighted average of the cost of equity and the Blank______.

Multiple choice question.

inflation risk premium


before-tax cost of debt


aftertax cost of debt


beta multiplier

Answer 1

The WACC (Weighted Average Cost of Capital) is the weighted average of the cost of equity and the **aftertax cost of debt**.

So the correct answer is: **aftertax cost of debt**.