The value of a firm at optimum capital structure is computed as ______

The value of a firm at optimum capital structure is computed as ________.

A) earnings before interest and taxes times one less tax rate divided by one plus weighted average cost of capital
B) earnings before interest and taxes times one less tax rate divided by weighted average cost of capital
C) operating cash flow divided by weighted average cost of capital
D) operating cash flow divided by one plus weighted average cost of capital

 

 

ANSWER

B

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