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Which of the following statements concerning the weighted average cost of capital (WACC) is/are correct? The WACC is computed on the after-tax basis and with

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Which of the following statements concerning the weighted average cost of capital (WACC) is/are correct? The WACC is computed on the after-tax basis and with market value information. The WACC is an appropriate discount rate for projects that have different risk levels as those of existing projects of the company. Since the WACC is an opportunity cost, it depends primarily on the uses of the funds, but not on the sources of the funds. a and c only. b and c only. In a decision tree, the analysis and hence the decision are dependent on: both the cash flows and probabilities of the successful path. only the probabilities of all paths on the tree. only the cash flows from the successful path. all cash flows and probabilities on the tree

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