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NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of 1 3 % . Suppose NatNah decides to increase
NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of Suppose NatNah decides to increase its leverage to maintain a market debttovalue ratio of Suppose its debt cost of capital is and its corporate tax rate is If NatNah's pretax WACC remains constant, what will be itseffective aftertax WACC with the increase in leverage?
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