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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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