Which of the following statements is correct?
A) The WACC as used in capital budgeting is an estimate of a company's before-tax cost of capital.
B) The percentage flotation costs associated with issuing new common equity are typically smaller than the flotation costs for new debt.
C) The WACC, as used in capital budgeting, is an estimate of the cost of all the capital a company has raised to acquire its assets.
D) There is an opportunity cost associated with using retained earnings, hence they are not "free."
Correct Answer:
Verified
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