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A firm currently has 23M in debt and 118M in equity. Its cost of debt is 4.0%, tax rate of 30%, and the Beta of

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A firm currently has 23M in debt and 118M in equity. Its cost of debt is 4.0%, tax rate of 30%, and the Beta of 1.6. Current market conditions indicate that the risk-free rate is 2.4% and the expected return on the market is 10.6%. If the firm were to increase its weight of debt by 10%, what would be the change in its WACC? Assume that the cost of debt and equity do not change

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