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You are starting a car rental company. To begin with, you finance the company with a large loan in order to purchase the cars. Your

You are starting a car rental company. To begin with, you finance the company with a large loan in order to purchase the cars. Your initial WACC is 7%. Over time you will pay off the debt and reduce your leverage. You should use the WACC of 7% to discount the companys free cash flows. True or False? Why?

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