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Which of the following is not an essential base-case assumption of WACC? a. The main effect of leverage (at first) comes from the interest tax

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Which of the following is not an essential base-case assumption of WACC? a. The main effect of leverage (at first) comes from the interest tax deduction. b. The firm constantly adjusts its amount of debt and equity, leading to constant Debt to Equity Ratio c. The average risk of a project is equivalent to average market risk of the firm's investments d. WACC must always be calculated with market values of debt

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