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True or false The weighted average cost of capital is the average cost of debt, preferred stock andcommon equity that a firm uses to finance
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- The weighted average cost of capital is the average cost of debt, preferred stock andcommon equity that a firm uses to finance its assets.
- The cost of debt is less than the cost of equity.
- Market risk premium = Return on large stocks - Return from T-Bills.
- If tax rates are zero, the before tax and after-tax cost of debt would be the same.
- If you want to earn high returns, you probably have to take more risk.
- The risk premium for Apple will be different from the risk premium for Walmart
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