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magine there are two identical firms A and B, with the only difference being that firm A is all-equity financed and firm B is financed
magine there are two identical firms A and B, with the only difference being that firm A is all-equity financed and firm B is financed by a mix of equity and debt. Which statement is most likely correct? Question 9 options: Firm A and Firm B have different unlevered equity betas. Firm A has a higher Weighted Average Cost of Capital (WACC) than Firm B. Firm A benefits from the tax shield, while Firm B does not have a tax shield. Firm B has a lower equity beta than Firm A
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