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Which of the following is most correct? When comparing two firms within the same industry, most analysts calculate the weighted average cost of capital on

Which of the following is most correct?

When comparing two firms within the same industry, most analysts calculate the weighted average cost of capital on a before-tax basis to facilitate comparisons.

Firms should use historical costs rather than marginal costs of capital.

An increase in the risk-free rate will increase the cost of equity.

All of these statements are equally correct.

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