If a firm's capital structure (the firm's mix of debt and equity) changes, the firm's weighted average
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If a firm's capital structure (the firm's mix of debt and equity) changes, the firm's weighted average cost of capital (WACC) will not change. This means that cash flows from year 1 through year infinity from the FCFF model can be discounted at a constant WACC.
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Related Book For
Understanding Business Ethics
ISBN: 9781506303239
3rd Edition
Authors: Peter A. Stanwick, Sarah D. Stanwick
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