When we adjust the WACC to reflect flotation costs, this approach
A) raises each capital source's effective cost.
B) raises only the cost of external equity.
C) reduces the cost of debt.
D) reduces each capital source's effective cost.

Name: When we adjust the WACC to reflect flotation costs, this approach A) raises each capital source's effective cost. B) raises only the cost of external equity. C) reduces the cost of debt. D) reduces each capital source's effective cost.
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The Answer is A

When We Adjust the WACC to Reflect Flotation Costs, This