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Consider the following two statements on valuation: I. According to the WACC fallacy, we can use one company-wide discount factor to value projects with different

Consider the following two statements on valuation:

I. According to the WACC fallacy, we can use one company-wide discount factor to value projects with different risks

II. The WACC method can be used even when the capital structure changes over time.

a.

Both statements are correct

b.

Only statement I is correct

c.

Only statement II is correct

d.

Both statements are false

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