Statements is accurate for levered firm

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Reference no: EM131064776

Which one of the following statements is accurate for a levered firm?

The subjective approach totally ignores a firm's own WACC.

A firm's WACC will decrease whenever the firm's tax rate decreases.

A reduction in the risk level of a firm will tend to decrease the firm's WACC.

WACC should be used as the required return for all proposed investments.

An increase in the market risk premium will decrease a firm's WACC.

Reference no: EM131064776

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