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  2. Topic
    Business
  3. Study Set
    Intermediate Financial Management
  4. Exam
    Exam 26: Mergers
  5. Question
    Rate Used to Discount Projected Merger Cash Flows Should Be
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Rate Used to Discount Projected Merger Cash Flows Should Be

Question 1

Question 1

True/False

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

Correct Answer:

verifed

Verified

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