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6 Which of the following statements regarding the weighted average cost of capital is false?...

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Finance

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6 Which of the following statements regarding the weighted average cost of capital is false? A. B. C. It is based in part on the aftertax cost of the outstanding liabilities. It should be used as the required return when analyzing a new project that is roughly as risky as the assets the firm already has in place. It is the return investors require on the total assets of the firm. As long as there are corporate taxes, it will change when the debt-equity ratio changes. It is unaffected by changes in corporate tax rates. D. E. 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 7 The bonds issued by XYZ Corporation are traded at par. Coupons are paid annually and the coupon rate is 6.6%. There are 19 years left to maturity. The face value of a bond is $1,000. What is the bond's yield-to-maturity (YTM)? A. B. C. Not able to calculate the number given available information. 3.0% 8.0% 6.6% 5.0% D. E

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