Question 302 WACC, CAPM
Which of the following statements about the weighted average cost of capital (WACC) is NOT correct?
(a) WACC before tax ##= r_D.\dfrac{D}{V_L} + r_{EL}.\dfrac{E_L}{V_L}##
(b) WACC before tax ##= r_f + \beta_{VL}.(r_m - r_f)##
(c) WACC after tax ##= r_D.(1-t_c).\dfrac{D}{V_L} + r_{EL}.\dfrac{E_L}{V_L}##
(d) WACC after tax ##= r_f + \beta_{VL}.(r_m - r_f) - \dfrac{r_D.D.t_c}{V_L}##
(e) WACC after tax ##= r_f + \beta_{VL}.(r_m - r_f)##