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7. Which of the following statements about a firms cost of unlevered equity in a perfect capital market is INCORRECT? A) It equals to the

7. Which of the following statements about a firms cost of unlevered equity in a perfect capital market is INCORRECT?

A) It equals to the cost of the firms asset.

B) It equals to the weighted average cost of capital.

C) It equals to the cost of levered equity only if the firms debt is risk-free.

D) It does not depend on the firms capital structure.

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