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Business, 27.06.2019 18:20 paatnguyyen

Wich of the following statements is/are true? a. with no debt, the wacc is equal to the unlevered equity cost of capital. b. with perfect capital markets, a firm's wacc is dependent of its capital structure and is equal to its equity cost of capital only the firm it is unlevered. c. with perfect capital markets as the firm borrows at the low cost of capital for debt, its equity cost of capital rises, but the net effect is that the firm's wacc is unchanged. d. with perfect capital markets, although debt has a lower cost of capital than equity, leverage does not lower a firm's wacc.

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