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- Suppose corporate taxes increase from 21% to 28%. Holding the cost of debt and cost of equity constant, how would the firm's weighted-average cost

- Suppose corporate taxes increase from 21% to 28%. Holding the cost of debt and cost of equity constant, how would the firm's weighted-average cost of capital change?

A. The WACC would increase.

B. The WACC would decrease.

C. The WACC would not change.

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