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Given that debt remains at a given percentage, and that this percentage is used in calculating the weighted average cost of capital, and this weighted
- Given that debt remains at a given percentage, and that this percentage is used in calculating the weighted average cost of capital, and this weighted average cost of capital is then used to calculate the net present value of the project proposal, which statement is true?
- NPV measures the wealth created for the common equity holder.
- NPV measures the wealth created for both the debt holder and the equity holder.
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