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Question
Which of the following is NOT a property necessary for a consistent estimate of the WACC?
a) It uses book-value-based weights.
b) It includes the opportunity cost of all investors.
c) It includes related costs/benefits such as the interest tax shield.
d) The duration of the securities used in estimating the WACC equals the duration of the free cash flows.
Answer
This answer is hidden. It contains 35 characters.
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