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