Which of the Following Statements Is Correct

question 43

Multiple Choice

Which of the following statements is correct?

• A) The WACC measures the before-tax cost of capital.
• B) An increase in the firm's marginal corporate tax rate will decrease the weighted average cost of capital.
• C) Flotation costs can decrease the weighted average cost of capital.
• D) None of these choices are correct.

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Definitions:

Filing Fees

Charges required to file documents with a governmental body or court, often mandatory for legal processes, registrations, or applications.

Seasoned Stock Offering

A public offering of securities by a company that has previously issued securities to the public.

Market Value

The going rate at which the market facilitates the purchase or sale of assets or services.