Question: Why does the yield to maturity need to be adjusted by the tax rate when calculating WACC? a) only straight line depreciation can be used

Why does the yield to maturity need to be adjusted by the tax rate when calculating WACC?

a) only straight line depreciation can be used when calculating WACC

b) none of these are correct

c) taxes must be computed for valuation purposes based on the marginal tax rate

d) interest expense is tax deductible so the effect of it must be removed

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