Quiz Ch 19 – T/F Step Two of WACC Adjustment for Changing Debt Ratios

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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True or false: When adapting WACC for alterations in debt ratios, use the following formula in the second step: rE = r + (r − rD) × (D/V).

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  • Search Terms: ⊚ true ⊚ false (d/v). (r + -step = adjust change, debt following formula: in of one process r ratios rd) re second should step the to use wacc when × −
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