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16.A tax-paying firm is currently financed with 50% debt and 50% equity. The after-tax cost of debt is 6% and the cost of equity is

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16.A tax-paying firm is currently financed with 50% debt and 50% equity. The after-tax cost of debt is 6% and the cost of equity is 12%. If the firm issues some 8% preferred stock at par, then the firm's WACC will: a. Increase b. Decrease C. Not be affected d. Either increase or decrease depending on the amount of preferred stock issued

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