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A firm has a cost of equity of 13 percent, cost of preferred stock of 11 percent, and after tax cost of debt os 6
A firm has a cost of equity of 13 percent, cost of preferred stock of 11 percent, and after tax cost of debt os 6 percent. Given this, whch of the following will increase the firm's weighted average cost of capital?
Increasing the firm;s tax rate
Issuing new bonds at par
Redeeming shares of common stock
Increasing the firm's beta
Increasing the debt-equity ratio
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