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I used an example in lecture for the weighted average cost of capital where the interest rate was 5% and the adequate return for stock
I used an example in lecture for the weighted average cost of capital where the interest rate was 5% and the adequate return for stock was 9%, so the WACC was 7%. Hint- yes this is true (at least for the case with equal amounts of debt and equity funding)
A. True
B. False
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