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1 pts Question 15 Which of the following statements is incorrect? Long-term debt typically describes debt with a maturity greater than one year. All the
1 pts Question 15 Which of the following statements is incorrect? Long-term debt typically describes debt with a maturity greater than one year. All the answers are correct except one. A firm's cost of preferred stock is the same as its dividend yield. The current cost of preferred stock, when estimating a firm's WACC, is the yield to maturity on its outstanding loans. The yield to maturity (YTM) is used for cost of debt after adjusting for the tax deductibility of interest on debt. D Question 16 1 pts Which of the following statements is correct? The cost of debt for a firm is a weighted average of the costs of the different types of equity financing used by the firm. The best method to use when estimating risk-free interest rate is the weighted average cost of capital approach. All the answers are correct. Right-hand side of the accounting balance sheet shows how the firm's assets were reinvested. We choose the yield to maturity on the publicly traded bonds when estimating the cost of debt to use in the WACC
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