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7. (9 points) Under M&M theory with taxes, what would happen to its WACC and the various components of WACC as it shifted to the

7. (9 points) Under M&M theory with taxes, what would happen to its WACC and the various components of WACC as it shifted to the higher debt ratio? Interest rate on debt Up Down No Change No Change Cost of Equity Up Down Down No Change WACC Up

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