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1.A company currently has a 30% debt-ratio. Its cost of debt is 5% and cost of equity is 14%. The tax rate is 21%. What

1.A company currently has a 30% debt-ratio. Its cost of debt is 5% and cost of equity is 14%. The tax rate is 21%. What will happen to its WACC if the debt ratio is increased to 40%? Show the appropriate calculations.

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