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Which Statement Makes This a False Statement? When a Firm

Question 8

Multiple Choice

Which statement makes this a false statement? When a firm pays commissions to underwriting firms that float the issuance of new stock


A) the component cost will need to be integrated to figure project WACCs.
B) the component cost will need to be integrated only for the firm's WACC.
C) the firm can increase the project's WACC to incorporate the flotation costs' impact.
D) the firm can leave the WACC alone and adjust the project's initial investment upwards.

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