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All else equal, the weighted average cost of capital for a firm will generally decrease when the: A. tax rate decreases. B. debt-equity ratio increases.

All else equal, the weighted average cost of capital for a firm will generally decrease when the:

A. tax rate decreases.

B. debt-equity ratio increases.

C. cost of equity increases.

D. market value of equity increases.

The correct answer is B, please give detailed explanation, thank you

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