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Assume that a company has equal amounts of debt, common stock, and preferred stock. an increase in the corperate tax rate of a firm will
Assume that a company has equal amounts of debt, common stock, and preferred stock. an increase in the corperate tax rate of a firm will cause its weighted average cost of capital(WACC) to
a. either fall or rise, depending on the riskiness of the company's debt
b. none of these are correct
c. fall
d. rise
e. remain unchanged
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