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The Firm's Unlevered (Asset)cost of Capital Is

Question 79

Multiple Choice

The firm's unlevered (asset) cost of capital is:


A) the weighted average of the equity cost of capital and the debt cost of capital.
B) the weighted average of the levered cost of capital and the equity cost of capital.
C) the debt cost of capital minus the equity cost of capital.
D) the unlevered beta minus the cost of capital.

Correct Answer:

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