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Next Page Page 1 of 12 Question 1 (1 point) Using market values rather than book values for cost of capital computations insures that the

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Next Page Page 1 of 12 Question 1 (1 point) Using market values rather than book values for cost of capital computations insures that the firm: 1) Does not ignore the value of retained earnings 2) Gets the full value of the debt tax shield 3) Uses expected rates of return 4) Will not invest in negative NPV projects Previous Page Next Page Page 1 of 12

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