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Which of the following statements is CORRECT? (5 points) a. A change in a companys target capital structure cannot affect its WACC. b. WACC calculations
Which of the following statements is CORRECT? (5 points) a. A change in a companys target capital structure cannot affect its WACC. b. WACC calculations should be based on the after-tax costs of all the individual capital components. c. If a companys tax rate increases, then, all else equal, its weighted average cost of capital will increase. d. An decrease in the risk-free rate will normally increase the marginal costs of both debt and equity financing.
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