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Author Question: Suppose a firm uses a single source of capital to fund a project. Which of the following statements ... (Read 49 times)

Maddie9229

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Suppose a firm uses a single source of capital to fund a project. Which of the following statements is correct?

This project should still be evaluated using the firm’s WACC.


Only the cost of that source should be used to evaluate the project.


The average historical cost of all previously raised capital should be used for evaluation.


Book values of the funding source should be used in calculating WACC.



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Marked as best answer by Maddie9229 on Aug 7, 2023

ALuthy

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Maddie9229

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Reply 2 on: Aug 7, 2023
Excellent


sarah_brady415

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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