Which of the following statements is correct? Multiple Choice All of the statements are correct. The weighted average cost of capital is calculated on a before-tax basis. The weights of debt and...

Multiple Choice

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  All of the statements are correct.

  
  
  
  


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  The weighted average cost of capital is calculated on a before-tax basis.

  
  
  
  


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  The weights of debt and equity should be based on the balance sheet because this is the most accurate assessment of the valuation.

  
  
  
  


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  An increase in the market risk premium is likely to increase the weighted average cost of capital.