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Assuming all M&M assumption hold and there is no taxes, if a firm decides to increase its debt - to - equity ratio, the firm
Assuming all M&M assumption hold and there is no taxes, if a firm decides to increase its debttoequity ratio, the firms weighted average cost of capital WACC will the cost of equity will and its cost of debt will
a
Decrease; increase; decrease;
b
Stay the same; increase; stay the same
c
Stay the same; stay the same; stay the same
d
increase; increase; increase
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