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Suppose a company is expanding into a new business activity which is much less risky than the companys current business activities. Other things being equal,

Suppose a company is expanding into a new business activity which is much less risky than the companys current business activities. Other things being equal, what is the most probably effect on the companys WACC?

A. WACC will decrease.

B. WACC will increase.

C. No effect on WACC.

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Chemical Principles

Chemical Principles

Authors: Steven S. Zumdahl, Donald J. DeCoste

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