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Determine whether the event will cause an increase (I), decrease (D) or no change (N) in the value on the right. Consider each event separately.
| Determine whether the event will cause an increase (I), decrease (D) or no change (N) in the value on the right. Consider each event separately. Assume ALL ELSE EQUAL. | Pre-tax Cost of Debt | Cost of Equity | MV WACC |
| An increase in Beta (). |
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| An increase in the 10-year T-bond yield. |
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| An increase in the stock price. |
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| A decrease in the price of the companys bonds. |
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| An increase in the yield to maturity on a companys bonds. |
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| An increase in the tax rate. |
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| An increase in investor risk aversion. |
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