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Firm A and Firm B have identical FCFs. Firm A is financed with all equity, but Firm B is financed with some debt. Which of

Firm A and Firm B have identical FCFs. Firm A is financed with all equity, but Firm B is financed with some debt. Which of the following is true about Firm A and Firm B

A) Firm A will have a lower enterprise value

B) Firm A will pay less in taxes

C) Firm B will have a higher WACC

D Firm B will have a lower cost of equity

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