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Business, 30.03.2020 16:35 tonio638

The cost of debt, rd, is normally less than rs, so rd(1 − T) will normally be much less than rs. Therefore, as long as the firm is not completely debt financed, the weighted average cost of capital (WACC) will normally be greater than rd(1 − T). True False

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The cost of debt, rd, is normally less than rs, so rd(1 − T) will normally be much less than rs. The...
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