True or false Use of the WACC formula assumes a. A project supports a fixed amount of

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True or false

Use of the WACC formula assumes

a. A project supports a fixed amount of debt over the project’s economic life.

b. The ratio of the debt supported by a project to project value is constant over the project’s economic life.

c. The firm rebalances debt each period, keeping the debt-to-value ratio constant.

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Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Question Posted: Dec 31, 2012 09:45 AM

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True or false Use of the WACC formula assumes a. A project supports a fixed amount of

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