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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 4 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 50%
D. An increase in leverage will decrease WACC

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