Problem

True or false? Use of the WACC formula assumesa. A project supports a fixed amount of debt...

True or false? Use of the WACC formula assumes

a. A project supports a fixed amount of debt over the project’s economic life.


b. The ratio of the debt supported by a project to project value is constant over the proj­ect’s economic life.


c. The firm rebalances debt each period, keeping the debt-to-value ratio constant.

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