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As the firm increases its debt ratio, initially, WACCcomp increases and the firm value decreases. When the debt ratio rises to the optimal level, WACCcomp
"As the firm increases its debt ratio, initially, WACCcomp increases and the firm value decreases. When the debt ratio rises to the optimal level, WACCcomp reaches its maximum and the firm value its minimum. As the debt ratio continues to increase, WACCcomp begins to fall and firm value begins to rise." True or false? Select one: O a True O b. False
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