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Question
According to the graph of WACC for Union Pacific, the following is (are) true:
I) cost of equity is an increasing function of the debt-equity ratio.
II) cost of debt is an increasing function of the debt-equity ratio.
III) weighted average cost of capital (WACC) is a decreasing function of the debt-equity ratio.
A. I only
B. I and II only
C. III only
D. I, II and III
Answer
This answer is hidden. It contains 12 characters.
Related questions
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