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An all equity firm announces that it is going to borrow $11 million in debt and then keep that debt at a constant value relative

An all equity firm announces that it is going to borrow $11 million in debt and then keep that debt at a constant value relative to the overall value of the company. What would be the appropriate discount rate for the expected interest tax shields generated by this additional debt?

A. Required return on debt

B. Required return on equity

C. Required return on Assets

D. WACC

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