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WACC

True/False: If the shape of the curve depicting a firms's WACC versus its debt-to-assets ratio is more like a sharp "V", as opposed to a shallow "U", it will be easier for the firm to maintain a steady dividend in the face of varying investment opportunities from year to year.

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True/False: If the shape of the curve depicting a firms's WACC versus its debt-to-assets ratio is more like a sharp "V", as opposed to a shallow "U", it will be easier for the firm to maintain a steady dividend in the face of varying investment opportunities from year to year.

Answer: FALSE

If the shape of the curve depicting a ...

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Answers a True/ False question on WACC

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