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Holding all else constant, which one of the following is most likely to increase the WACC of a firm with debt in its capital structure?
Holding all else constant, which one of the following is most likely to increase the WACC of a firm with debt in its capital structure? (3 points)
A. An increase in the risk-free rate when the beta exceeds 1
B. A decrease in the dividend growth rate
C. A decrease in the firms beta
D. An increase in the weight of debt
E. A decrease in the tax rate
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