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According to the Graph of WACC for Union Pacific, Which

question 69

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According to the graph of WACC for Union Pacific, which of the following is (are) true?
I.The cost of equity is an increasing function of the debt-equity ratio.
II.The cost of debt is an increasing function of the debt-equity ratio.
III.The weighted average cost of capital (WACC) is a decreasing function of the debt-equity ratio.


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