Correctly applies to unlevered firm that pays no taxes

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Which one of these statements correctly applies to an unlevered firm that pays no taxes? The return on assets equals the return on equity and also equals WACC. The return on equity equals WACC and exceeds the return on assets. The return on equity exceeds the WACC. The return on assets equals the return on equity and exceeds WACC.

Reference no: EM131081577

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