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Assume the cost of equity for a firm exceeds the firm's pretax cost of debt. Given this assumption, an increase in which of the following

Assume the cost of equity for a firm exceeds the firm's pretax cost of debt. Given this assumption, an increase in which of the following will increase the firm's WACC?

I. tC

II. debt-to-equity ratio

III. RB (1 - tc)

IV. Rs

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