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2.5 pts Question 15 Which of the following statements is most correct? Since debt financing raises the firm's financial risk, raising a company's debt ratio

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2.5 pts Question 15 Which of the following statements is most correct? Since debt financing raises the firm's financial risk, raising a company's debt ratio will always increase the company's WACC. Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce the company's WACC. Increasing a company's debt ratio will typically reduce the marginal cost of both debt and equity financing however, it still may raise the company's WACC. Statements a and care correct. None of the statements above is correct

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