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Which of the Following Statements Is Correct

Question 51

Multiple Choice

Which of the following statements is correct?


A) If the risk-free rate increases, it will have no impact on the weighted average cost of capital.
B) Investor returns are reduced when float costs increase, and therefore float costs reduce the weighted average cost of capital.
C) The weighted average cost of capital is a historical cost.
D) None of these choices are correct.

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