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Business, 05.11.2019 08:31 AlwaysMarcus5577

Which of the following statements is correct? a. wacc calculations should be based on the before-tax costs of all the individual capital components. b. flotation costs associated with issuing new common stock normally reduce the wacc. c. if a company's tax rate increases, then, all else equal, its weighted average cost of capital will decline. d. an increase in the risk-free rate will normally lower the marginal costs of both debt and equity financing. e. a change in a company's target capital structure cannot affect its wacc.

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Which of the following statements is correct? a. wacc calculations should be based on the before-tax...
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