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What is true regarding the cost of capital (WACC)? Higher WACC increases firm value because management accepts more profitable projects Lower WACC increases firm value
What is true regarding the cost of capital (WACC)? Higher WACC increases firm value because management accepts more profitable projects Lower WACC increases firm value because the present value of the firm's future cash flows is higher WACC is not related to firm value Higher WACC implies lower risk Lower WACC decreases firm value because it causes management to take on too many investment opportunities
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