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Company issues new shares and with that money pays back a bank loan. Company's cost of capital (WACC) should: Select one: a. Remain unchanged as
Company issues new shares and with that money pays back a bank loan. Company's cost of capital (WACC) should:
Select one:
a.
Remain unchanged as the total capital has not changed
b.
Decrease, as company doesn't pay any dividends
c.
decreases because the company now pays less interest
d.
Increase because equity is more expensive as debt
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