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Which of the following statements is incorrect? o If a company's weighted average cost of capital is less than the required return on equity, then
Which of the following statements is incorrect? o If a company's weighted average cost of capital is less than the required return on equity, then the firm has debt in its capital structure. Income taxes have the effect of decreasing the cost of debt for a firm All the answers are correct except one. O A firm's risk premium is equal to the weighted average of all its financing costs The cost of debt can be calculated by solving for the yield to maturity of the debt using the bond pricing model
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