QUESTION 38 Suppose a firm uses a single source of capital to fund a project. Which of the following statements is correct? a. This project should still be evaluated using the firm's WACC. Ob. The average cost of all previously raised capital should be used for evaluation. c. Only the cost of that source should be used to evaluate the project. d. Book values of the funding source should be used in calculating WACC. QUESTION 39 Which of the following statements is correct? a. An increase in a firm's tax rate will increase the component cost of debt, provided the YTM on the firm's