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Which of the Following Is NOT a Step in the WACC

Question 93

Multiple Choice

Which of the following is NOT a step in the WACC valuation method?


A) Compute the value of the investment,including the tax benefit of leverage,by discounting the free cash flow of the investment using the WACC.
B) Compute the weighted average cost of capital.
C) Determine the free cash flow of the investment.
D) Adjust the WACC for the firm's current debt/equity ratio.

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