Which of the following condition(s) must hold before a firm can use its existing WACC...
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Finance
Which of the following condition(s) must hold before a firm can use its existing WACC to discount the cash flows of a new investment?
I The new asset must be financed entirely with equity II The new investment's asset beta must be similar to the firms existing asset beta III The firms debt ratio must remain unchanged after the investment
A. II only
B. I and II
C. II and III
D. I and III
E. I only
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