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Which of the following statements is correct? a. if a company's tax rate increases, then, all else equal, its weighted average cost of capital will
Which of the following statements is correct? a. if a company's tax rate increases, then, all else equal, its weighted average cost of capital will decline. b. a change in a company's target capital structure cannot affect its WACC. c. WACC calculations should be based on before-tax costs of all the individual capital components. d. flotation costs associated with issuing new common stock normally reduce the WACC
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