Question: Consider the WACC, why in the formula do we include the term (1-Tax Rate) in the equation? Group of answer choices The interest on corporate

Consider the WACC, why in the formula do we include the term (1-Tax Rate) in the equation?

Group of answer choices

The interest on corporate bonds is deducted prior to taxes according to accounting rules

Interest has more risk so we adjust for this with the deduction for taxes

Most companies have more debt than equity, so this terms adjusts for this fact

Debt can be thought of as a depreciable expense

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