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Consider the Following Equation for the Project WACC with a Fixed

Question 27

Multiple Choice

Consider the following equation for the project WACC with a fixed debt schedule: rwacc = rU - dτc[rD + f(rU - rD) ]
The term d in this equation represents:


A) a measure of the permanence of the debt level.
B) the annual adjustment percentage to the amount of debt.
C) the debt-to-value ratio.
D) the dollar amount of debt outstanding.

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