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Statement I: Firms need to know their maximum required rate of return when evaluating possible investment projects. Statement II: A firm's weighted average cost of
Statement I:
Firms need to know their maximum required rate of return when evaluating possible investment projects.
Statement II:
A firm's weighted average cost of capital is based on investors' required rates of return on a firm's securities and targeted capital structure.
Both statements are incorrect |
Statement 1 is correct; statement 2 is incorrect |
Both statements are correct |
Statement 1 is incorrect; statement 2 is correct |
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