Consider the WACC, why in the formula do we include the term " (1-Tax Rate)" in the equation? O Interest is always paid to debt holders, where dividends are not always paid to equity holders, so we adjust for the these tax effects O Debt is "typically" less risky than equity, so this adjustment helps to compensate for this fact. O The interest on corporate bonds is deducted prior to taxes according to accounting rules O Debt can be thought of as a depreciable expense