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The cost of capital for a firm, TWACC in a tax-free environment is s 1) equal to the market value weighted average of the return

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The cost of capital for a firm, TWACC in a tax-free environment is s 1) equal to the market value weighted average of the return on equity and the return on debt; II) equal to ra, the rate of return for that business risk class, III) equal to the overall rate of return required on the levered firm

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