Reference no: EM131054716
Which one of these statements is correct?
A) the weighted avg. cost of capital is equal to B/S(Rs)(1-Tc)
B) the cost of equity for an all-equity firm is less than the cost of equity for levered firm.
C) the cost of levered equity is indirectly related to beta
D) the discount rate for levered equity is unaffected by the debt-equity ratio
E) flotation costs increase the value of Rs
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The cost of levered equity is indirectly related to beta
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