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Author Question: Which of the following statements is correct? (Read 12 times)

kmoyer2

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on: Aug 7, 2023
Which of the following statements is correct?

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The WACC as used in capital budgeting is an estimate of a company’s before-tax and after-tax cost of capital.


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The percentage flotation costs associated with issuing new common equity are typically smaller than the flotation costs for new debt.


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There is an opportunity cost associated with using retained earnings, hence they are not “free.”


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The WACC as used in capital budgeting will be simply the after-tax cost of debt if the firm plans to use only debt to finance its capital budget during the coming year.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by kmoyer2 on Aug 7, 2023

jojomac20

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kmoyer2

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

isabelt_18

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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