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bhans2 Wrote:
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It depends on how the WACC is calculated, if the
cost of debt used to calculate WACC is the same as
the rate that will provide the interest expense on
the income statement EVA and RI should be equal.
But since that isn’t always the case, don’t assume
they will be the same for the test.
Dude, what are you talking about? WACC and required return on equity are calculated differently.

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