Question 15 1 pts Which of the following statements is correct? The yield to maturity (YTM) is used for cost of equity after adjusting for the tax deductibility of interest on equity All the answers are correct. Long-term debt typically describes debt with a maturity less than one year. Afirm's cost of capital is a weighted average of all its financing costs. The proportions of debt and equity used to determine the weighted average cost of capital for a firm is based on the book value of debt and equity outstanding. Question 16 1 pts Which of the following statements is correct? The debt with a maturity of less than one year is typically viewed as permanent debt. Unsystematic risk can be eliminated by holding a diversified portfolio All the answers are correct. The cost of common stock can be calculated by solving for the yield to maturity of the debt using the bond pricing model The U.S. tax code allows a deduction for dividend payments of the firms