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Other factors held constant, an increase in a firm's cost of debt: Results from a decrease in beta. Will increase the firm's capital structure weight

Other factors held constant, an increase in a firm's cost of debt:

Results from a decrease in beta.

Will increase the firm's capital structure weight of debt.

Will increase the firm's weighted average cost of capital.

Will increase the book value of equity.

Will decrease the firm's cost of equity.

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