Question 10 1 pts In a world with corporate taxes but no other market imperfections, Juventus FC is financed 60% by common stock and 40% by debt. Its current WACC is 10.38%. Over the next three years, Juventus plans to reduce its leverage (DN) ratio to 27%. If it uses a WACC of 10.38% to evaluate long-term projects, it will: undervalue projects, because as its leverage falls the risk and required return of its equity will also fall. overvalue projects, because as its leverage falls it will get fewer interest tax shields. undervalue projects, because as its leverage falls its unlevered risk will also fall. Value the projects just right, because M&M theory predicts that WACC does not change with capital structure