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Which of the following statements is CORRECT? Group of answer choices If a firm's after-tax cost of equity exceeds its after-tax cost of debt, it
Which of the following statements is CORRECT? Group of answer choices If a firm's after-tax cost of equity exceeds its after-tax cost of debt, it can always reduce its WACC by increasing its use of debt. A firm with high business risk is more likely to increase its use of financial leverage than a firm with low business risk, assuming all else equal. There is no reason to think that changes in the personal tax rate would affect firms' capital structure decisions. In general, a firm with low operating leverage also has a small proportion of its total costs in the form of fixed costs
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