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Which one of the following statements is accurate for a levered firm? WACC should be used as the required return for all proposed investments. A

Which one of the following statements is accurate for a levered firm? WACC should be used as the required return for all proposed investments. A firm's WACC will decrease whenever the firm's tax rate decreases. An increase in the market risk premium will decrease a firm's WACC. The subjective approach totally ignores a firm's own WACC. A reduction in the risk level of a firm will tend to decrease the firm's WACC

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