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Author Question: The cost of debt, rd, is normally less than rs, so rd(1 - T) will normally be less than rs. ... (Read 80 times)

fungirl

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on: Aug 7, 2023

Question 1

The component costs of capital are always equal to embedded costs.

◦ true
◦ false

Question 2

The cost of debt, rd, is normally less than rs, so rd(1 - T) will normally be less than rs. Therefore, as long as the firm is not completely debt financed, the WACC will normally be greater than rd(1 - T).

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

ryanb

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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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fungirl

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

T4T

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Reply 3 on: Yesterday
Excellent

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