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In a perfect world with no taxes, if a firm decides to increase its debt-to-equity ratio, the firms weighted average cost of capital (WACC) will
In a perfect world with no taxes, if a firm decides to increase its debt-to-equity ratio, the firms weighted average cost of capital (WACC) will ________________.
a. | Decrease | |
b. | Remain the same | |
c. | First decrease, then increase | |
d. | Increase |
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