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    Fundamentals of Financial Management Study Set 1
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    Exam 21: Mergers and Acquisitions
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    The Rate Used to Discount Projected Merger Cash Flows Should
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The Rate Used to Discount Projected Merger Cash Flows Should

Question 28

Question 28

True/False

The rate used to discount projected merger cash flows should be the overall cost of capital of the new consolidated firm because it incorporates the actual capital structure of the new firm.

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