Question
19. If all other factors are constant and the effective corporate tax rate of a company is increased, the weighted average cost of capital (WACC)
19. If all other factors are constant and the effective corporate tax rate of a company is increased, the weighted average cost of capital (WACC) _________.
D. will be unchanged or decrease
Why the WACC is unchanged, thanks
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
