1. WACC (S18-1) True or false? Use of the WACC formula assumes a. A project supports a...

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1. WACC (S18-1) True or false? Use of the WACC formula assumes

a. A project supports a fixed amount of debt over the project’s economic life.

b. The ratio of the debt supported by a project to project value is constant over the project’s economic life.

c. The firm rebalances debt each period, keeping the debt-to-value ratio constant.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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