Question
Which of the following statements is CORRECT? A change in a companys target capital structure cannot affect its WACC. The WACC is calculated using before-tax
Which of the following statements is CORRECT?
A change in a companys target capital structure cannot affect its WACC.
The WACC is calculated using before-tax costs for all components.
The WACC exceeds the cost of equity
An increase in the risk-free rate will normally lower the marginal costs of both debt and equity financing.
None of the above
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Lorne Switzer, Maureen Stapleton, Dana Boyko, Christine Panasian
9th Canadian Edition
1259271935, 9781259271939
