a firm expands by opening up new shops the same as the old ones,so the beta of assets is the same. the new shops are funded with debt only. assume that there is no change in the firm's credit risk.

which of the following statements is not correct? the firm's

a)WACC after tax will fall

b)WACC before tax will fall

c)required return on equity will rise

d)beta of equity will rise

the correct answer is b), plz explain?