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Posted on Sep 09, 2024

Under no taxes and no costs of financial distress, increase in a firm's leverage a. will leave both WACC and cost of equity unaffected b.

"Under no taxes and no costs of financial distress, increase in a firm's leverage"

a. will leave both WACC and cost of equity unaffected

b. will leave WACC unaffected

c. will decrease its WACC

d. will increase its WACC but leave the cost of equity unaffected

e. will increase its WACC

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