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Question 3 1 pts Now suppose bankruptcy costs are the only market imperfection. Then, as leverage increases: Cost of equity and WACC decrease; firm value

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Question 3 1 pts Now suppose bankruptcy costs are the only market imperfection. Then, as leverage increases: Cost of equity and WACC decrease; firm value increases Cost of equity and WACC increase; firm value decreases Cost of equity decreases; WACC and firm value are unchanged Cost of equity, WACC, and firm value are unchanged Cost of equity increases; WACC and firm value are unchanged

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