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# In the MOdigliani Miller perfect world with no taxes if we assume that the effect of adding debt to a firms capital strcuture is
# In the MOdigliani Miller perfect world with no taxes if we assume that the effect of adding debt to a firms capital strcuture is exactly balanced by an increase in the cost of equity as more debt is added what is the effect of increased debt usage on the weighted average cost of capital.
wacc first increases then decreases as leverage increases
wacc remains constant as leverage increases
wacc decreases continually as leverage increases
wacc increases continously as leverage increases
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