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QUESTION 20 In calculating the weighted average cost of capital (WACC), which of the following statements is least accurate? A. The cost of debt is

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QUESTION 20 In calculating the weighted average cost of capital (WACC), which of the following statements is least accurate? A. The cost of debt is equal to one minus the marginal tax rate multiplied by the coupon rate on outstanding debt B. Different methods for estimating the cost of common equity might produce different results C. The cost of preferred equity capital is the preferred dividend divided by the price of preferred shares D. The weights used in calculating WACC are based on the market values of each capital components E. None of the above

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