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Ceteris paribus (l

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Ceteris paribus (l.e., all the rest unchanged), which of the following statements is correct about the Equity Value (E) of a company? (Sanjib: 2) O Equity value is not affected by the cost of debt (kd) because the discount rate is Ke (i.e., the cost of shareholders' capital). Equity value is affected by the cost of debt (kd) because the discount rate is the WACC. Equity value is affected by the cost of debt (kd) because it affects the calculation of FCFF. None of the other answers 11 Do you want to withdraw from the test? No Yes Michela Arnaboldi

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