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Management · Q218

Management Accounting

Graduate and Post Graduate · Management · question 218

Q218

After-tax average cost of funds used by company in long run is equal to

A.
weighted average cost of capital
Answer
B.
economic value added
C.
after-tax operating income
D.
net income

Answer: Option A

Solution

Answer: Option A
Solution:
After-tax average cost of funds used by company in long run is equal to weighted average cost of capital.
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