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In a world with corporate taxes but no bankruptcy costs, how does leverage affect WACC? Question 4 options: A . An increase in leverage will
In a world with corporate taxes but no bankruptcy costs, how does leverage affect WACC?
Question options:
A An increase in leverage will increase WACC
B An increase in leverage will be offset by a decrease in equity financing thus leaving WACC unchanged
C WACC will only be affected if leverage is higher than
D An increase in leverage will decrease WACC
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