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Question Completion Status: As Moving to wnother question will sove this resporse. Question 9 (Lecture 10-Asset Cost of Capital and Lecturo 11- Capltal Budgoting and

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Question Completion Status: As Moving to wnother question will sove this resporse. Question 9 (Lecture 10-Asset Cost of Capital and Lecturo 11- Capltal Budgoting and Valuation with Leverage) Which one of the following statement is FALSE? A. For finms with atie risk of detault, the yield to maturiby of thek bonds is a raazorable nstimate of investors expegded return oo the bonds B. To use the WACC method to estimate the NPV of a levered project (sappose the undeetying assumptions for the WacC method hold) we should discount ihe unievered ifee cash Eons of project using the after tax WACC (ithe weighled average cost of captall) C. The atter-tax WACC can be used throoghouA the frm as the company wide cost of capial for now inventments that are of comparable fisk to the rest of the firm aed that will net alter ine 1 debt-equity ratio D. None of the above. As Moving to another question will save this response

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