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marketing manag... Question 6 1 pts The CFO of Uncle Umberto's Unicycles (U3) has determined that the company's weighted average cost of capital (WACC) is

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marketing manag... Question 6 1 pts The CFO of Uncle Umberto's Unicycles (U3) has determined that the company's weighted average cost of capital (WACC) is equal to 12.5 percent; that is, WACCU3 - 12.5%. U3 is financed with debt and common stock (i.e., it has no preferred stock). Based on this information, which of the following statements is correct? 03's assets have an average internal rate of return (IRR) equal to 12.5 percent. The required rate of return (1) U3 should use to evaluate capital budgeting projects that have average risk is 12.5 percent. The average yield to maturity (YTM) on U3's bonds is 125 percent. U3's cost of retained earnings is equal to 12.5 percent The average interest rate U3 pays its bondholders is 12.5 percent

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