If the WACC is used in valuing a LBO:
A) the WACC remains constant because of the final target debt ratio desired.
B) the flotation costs must be added to the total UCF.
C) the WACC must be recalculated as the debt is repaid and the cost of capital increases.
D) the tax shields of debt are not available because the corporation is no longer publicly traded.
Correct Answer:
Verified
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