Question: Which of the following statements is False? When using the WACC method to value a firm's project, a prerequisite is that the firm has to

Which of the following statements is False? When using the WACC

Which of the following statements is False? When using the WACC method to value a firm's project, a prerequisite is that the firm has to maintain a constant leverage ratio. A. B. C. The WACC method can be used to value new projects that are carbon copies of the firm's existing businessincluding its mix of equity and debt. The total value of the levered firm exceeds the value of the firm without leverage due to the present value of the tax savings from debt. When using the WACC method to value a levered project, we should discount its unlevered free cash flows by the WACC to obtain the value of the levered project. D. E. None of the above

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