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You are comparing two firms. All you know about them is that the WACC of firm A is 12% and the WACC of firm B is 15%. Which of the following can you infer from this? I. B has more systematic risk II. A uses more debt III. A and B are not in the same line of business IV. A uses preferred stock but B does not.

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Financial Management, Finance

Category:- Financial Management
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