With No Debt, the WACC Is the Cost of Equity

question 69

True/False

With no debt, the WACC is the cost of equity plus the required rate of return on the firm's underlying assets.

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Definitions:

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The process of recognizing or establishing the identity of a person or thing, often used in security and legal contexts.

Liabilities

Financial obligations or debts that an entity is required to pay to others, such as loans, accounts payable, and mortgages.

Sales Contract

A legal agreement between a buyer and a seller detailing the terms and conditions of the sale of goods, services, or property.

Express Designation

A specified or clearly stated appointment, selection, or naming of an individual or entity for a particular role or responsibility.