Question: Which statement is correct, all else held constant? A decrease in a firm's WACC will increase the attractiveness of the firm's investment options. Beta is

Which statement is correct, all else held constant? A decrease in a firm's WACC will increase the attractiveness of the firm's investment options. Beta is used to compute the return on equity and the standard deviation is used to compute the return on debt. The aftertax cost of debt increases when the market price of a bond increases. WACC is applicable only to firms that issue both common and preferred stock

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