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Projects with great amounts of diversifiable risk should generally have higher company costs of capital.
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- One calculates the after-tax weighted average cost of capital (WACC) using which of the following formulas?A: WACC = (rD) (D/V) + (rE) (E/V), where V = D + E.B: WACC = (rD) (D/E) + (rE) (E/D).C: WACC = (rD) (1 − TC) (D/V) + (rE) (E/V), where V = D + E.D: WACC = (rD) (1 − TC) (D/V) + (rE) (1 − TC) (E/V), where V = D + E.