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A firm has a cost of equity of 10 percent, a cost of preferred of 9 percent, and an aftertax cost of debt of 5
A firm has a cost of equity of 10 percent, a cost of preferred of 9 percent, and an aftertax cost of debt of 5 percent.
Given this, which one of the following will decrease the firm's weighted average cost of capital?
a. decreasing the debt-equity ratio
b. increasing the systematic risk level of the firm
c. redeeming the bond issue
d. issuing new equity securities
e. issuing new debt
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