The answer is a. the expected return on its assets.

Here's why:

The Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its investors; the weights are the proportion of each financing component in the company's capital structure.

For a company that pays no corporate taxes, the WACC will be equal to the expected return on its assets. This is because, in the absence of taxes, the cost of capital is simply the return required by all investors in the firm, which is the same as the expected return on the firm's assets.

In other words, the company's assets are financed by either debt or equity, and the WACC represents the average return expected by both types of investors. Therefore, it is equivalent to the expected return on the company's assets.

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The answer is a. the expected return on its assets.

Here's why:

The Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its investors; the weights are the proportion of each financing component in the company's capital structure.

For a company that pays no corporate taxes, the WACC will be equal to the expected return on its assets. This is because, in the absence of taxes, the cost of capital is simply the return required by all investors in the firm, which is the same as the expected return on the firm's assets.

In other words, the company's assets are financed by either debt or equity, and the WACC represents the average return expected by both types of investors. Therefore, it is equivalent to the expected return on the company's assets.

Knowee AI · Accepted Answer

The answer is a. the expected return on its assets.

Here's why:

The Weighted Average Cost of Capital (WACC) is the average rate of return a company is expected to pay its investors; the weights are the proportion of each financing component in the company's capital structure.

For a company that pays no corporate taxes, the WACC will be equal to the expected return on its assets. This is because, in the absence of taxes, the cost of capital is simply the return required by all investors in the firm, which is the same as the expected return on the firm's assets.

In other words, the company's assets are financed by either debt or equity, and the WACC represents the average return expected by both types of investors. Therefore, it is equivalent to the expected return on the company's assets.

For a company that pays no corporate taxes, its WACC will be equal to:Select one:a.the expected return on it assets.b.the expected return on its debt.c.the total value of its assets.d.the expected return on its equity.

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