单选题 When calculating the weighted average cost of capital (WACC) an adjustment is made for taxes because :

A. equity is risky.
B. preferred stock is used.
C. the interest on debt is tax deductible.

【正确答案】 C

【答案解析】Equity and preferred stock are not adjusted for taxes because dividends are not deductible for corporate taxes. Only interest expense is deductible for corporate taxes.