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A levered firm with significant taxable income faces no expected financial distress costs. Management announced it will issue new equity and use the proceeds to
A levered firm with significant taxable income faces no expected financial distress costs. Management announced it will issue new equity and use the proceeds to retire half of its debt. As a result of this capital structure change, the firm's equity beta will its cost of equity will its WACC will and its total value will O increase ; increase ; decrease ; increase o decrease ; decrease ; increase ; decrease decrease ; decrease ; decrease ; increase O decrease ; decrease ; decrease : decrease
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