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In a Modigliani and Miller world with no corporate taxes, if a company decreases its use of financial leverage, its weighted average cost of capital

In a Modigliani and Miller world with no corporate taxes, if a company decreases its use of financial leverage, its weighted average cost of capital will most likely:

Group of answer choices

Remain unchanged.

Increase.

Decrease.

This cannot be determined without additional information.

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