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The Advantage of the Adjusted Present Value Valuation Method Is

Question 44

Multiple Choice

The advantage of the adjusted present value valuation method is that


A) it makes it easier to determine how an extra dollar of debt will increase firm value than do the other two methods.
B) it makes it easier to determine how a target ratio change in capital structure will affect the firm value than do the other two methods.
C) it makes it easier to determine how an extra percentage in debt will increase firm value than do the other two methods.
D) it makes it less likely that you will use an incorrect expected cash flow in your calculation than do the other two methods.

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