Financial Practitioners Include Short-Term Debt in WACC Calculations

question 62

Multiple Choice

Financial practitioners include short-term debt in WACC calculations:
I. If the short-term debt is at least 10% of total liabilities
II. If the short-term debt is at least 10% of the total assets
III. If the net working capital is negative
IV. If the net working capital is positive

• A) I and IV only
• B) I and III only
• C) II and IV only
• D) II and III only

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