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Which of the following statements is correct? The WACC is a measure of the before-tax cost of capital. The WACC measures the marginal cost of

Which of the following statements is correct?

  • The WACC is a measure of the before-tax cost of capital.

  • The WACC measures the marginal cost of capital.

  • It is common that the after-tax cost of debt exceeds the cost of equity.

  • None of these choices are correct.

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