In a world of corporate taxes only, show that the RWACC can be written as RWACC =
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In a world of corporate taxes only, show that the RWACC can be written as RWACC = RA × [1 – tC (B/V)].
36 Cost of Equity and Leverage Assuming a world of corporate taxes only, show that the cost of equity, RS, is as given in the chapter by MM Proposition II with corporate taxes.
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Related Book For 
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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