Quiz Ch 19 – T/F Assumption in Discounting Free Cash Flows at WACC

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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True or false: When discounting free cash flows at the WACC, it is assumed that debt is adjusted periodically to keep a stable ratio of debt to the market value of the firm.

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  • Search Terms: ⊚ true ⊚ false a assumes at cash constant debt discounting every firm. flows free is maintain market of period ratio rebalanced that the to value wacc
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