Question: Why do we tax-adjust the return on debt when calculating WACC? a) because debt is risk-free b) because interest is tax deductible c) because debt

Why do we tax-adjust the return on debt when calculating WACC?

a)

because debt is risk-free

b)

because interest is tax deductible

c)

because "debt doesn't matter" for corporations

d)

all of the above

e)

none of the above

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