Are the following statements true, false, or uncertain? Explain briefly. (a) Because the cost of...
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Accounting
Are the following statements true, false, or uncertain? Explain briefly.
(a) Because the cost of debt is usually below the cost of equity, firms should finance their operations with as much debt as possible.
(b) If done correctly, the NPV estimated should be the same if either real cash flows are discounted at the real discount rate or nominal cash flows are discounted at the nominal discount rate.
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