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Which of the following statements are true in a perfect capital market? a) The value of the firm is independent of its capital structure. b)

Which of the following statements are true in a perfect capital market? a) The value of the firm is independent of its capital structure. b) There is no financial risk, so the cost of equity is independent of the firm's capital structure. c) The WACC falls as leverage increases, reflecting the tax advantage of debt financing. d) All of the above

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