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Which of the following statements is/are correct? I. Flotation costs reduce the NPV of a project. II. As debt to equity ratio increases, WACC increases.

Which of the following statements is/are correct?

I. Flotation costs reduce the NPV of a project.

II. As debt to equity ratio increases, WACC increases.

	A.	Neither I nor II.
	B.	I and II.
	C.	II only.
	D.	I only.

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