Question
Which of the following statement is correct? I. The cost of debt is the yield-to-maturity. II. The use of WACC to select investments is acceptable
Which of the following statement is correct?
I. The cost of debt is the yield-to-maturity.
II. The use of WACC to select investments is acceptable when the risks of the projects are equal to the risk of the firm.
III. The dividend growth model can adjust systematic risk when computing the required rate of return.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
