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A firm currently has 24M in debt and 79M in equity. Its cost of debt is 3.5%, tax rate of 23%, and the Beta of

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A firm currently has 24M in debt and 79M in equity. Its cost of debt is 3.5%, tax rate of 23%, and the Beta of 1.4 . Current market conditions indicate that the risk-free rate is 2.2% and the expected return on the market is 11.2%. If the firm were to increase its weight of debt by 11%, what would be the change in its WACC? Assume that the cost of debt and equity do not change

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