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What effect does the method of financing investments have on the value of the firm? The method of financing investments alters the weighted average cost

What effect does the method of financing investments have on the value of the firm?

The method of financing investments alters the weighted average cost of capital.

Issuing more costly (i.e., riskier) bonds for financing investments has no effect on

the value of the firm

Any method of financing investments has the same effect on the value of the

firm.

Financing through tax-advantaged debt has no effect on the value of the firm

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