Which of the Following Is False

question 374

Multiple Choice

Which of the following is false?

• A) The WACC is equal to the firm's embedded debt cost times (1 - the tax rate).
• B) The WACC requires the cost of debt be decreased by (1 - the tax rate).
• C) The WACC is not directly observable in financial markets.
• D) The WACC is the required return on any investments a firm makes that have a level of risk equal to that of present operations.
• E) The WACC reflects the risk and target capital structure of a firm's existing assets as a whole.

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Definitions:

L-Serine

An α-amino acid important in biosynthesis, which serves as a building block for proteins.

Predominant Form

The most abundant or common form of a substance under specified conditions.

L-Phenylalanine

An essential amino acid with the formula C9H11NO2, used in the biosynthesis of proteins.

Biological pH

The pH range maintained in biological systems and fluids critical for the proper functioning of cells and biochemical processes.