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Which of the following statements is CORRECT? a. Flotation costs associated with issuing new common stock normally reduce the WACC b. WACC calculations should be

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Which of the following statements is CORRECT? a. Flotation costs associated with issuing new common stock normally reduce the WACC b. WACC calculations should be based on the before-tax costs of all the individual capita components c. An increase in the risk-free rate will normally lower the marginal costs of both debt a equity financing d. A change in a company's target capital structure will affect its WACC

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