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Tin House BBQ uses only equity financing. The federal government recently announced an increase in the corporate tax rate. What is the most likely impact

Tin House BBQ uses only equity financing. The federal government recently announced an increase in the corporate tax rate. What is the most likely impact on the company's weighted average cost of capital (WACC)? Increase since taxes are bad Decrease since the value of the tax shield of debt will increase No change since the tax shield of debt only matters if the firm uses debt financing Not enough information to decide

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