Which one of the following statements is accurate for a levered firm?
The subjective approach totally ignores a firm's own WACC.
A firm's WACC will decrease whenever the firm's tax rate decreases.
A reduction in the risk level of a firm will tend to decrease the firm's WACC.
WACC should be used as the required return for all proposed investments.
An increase in the market risk premium will decrease a firm's WACC.