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Which of the following statements are true? Select one or more correct answers. O None...

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Accounting

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Which of the following statements are true? Select one or more correct answers. O None of these statements is true. O For a levered firm, the return on equity compensates the bondholders for both business and financial risk. O If the manager levers down, the stock's systematic risk will go down as well. O For a levered firm, the stock beta compensates shareholders for the additional financial risk. O Astock beta depends on the manager's use of debt. O If the systematic risk of the assets increases, the debt-to-equity ratio decreases. O For an all equity firm, the return on equity is greater than the return on assets. Which of the following statements concerning WACC are true? Select one or more correct answers. O It takes into account how payments to capital providers are treated for tax purposes. O It compensates the capital providers for their opportunity costs. O It is the internal rate of return for a project. OIt adjusts for the fraction of money raised by each type of capital provider. O It reflects the riskiness of the cash flows generated by the project's assets. O None of these statements is true. O WACC is the discount rate a firm should use to evaluate all of its projects

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