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(a) Explain how company risk can be captured in WACC. (3 marks) (b) Explain what would happen to WACC if a company: - Increases its
(a) Explain how company risk can be captured in WACC. (3 marks)
(b) Explain what would happen to WACC if a company:
- Increases its financial leverage.
- Is all equity financed.
- Pays a higher corporate tax rate.
(3 marks)
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