Woodsburgs's capital structure is 60% equity and 40% debt. Assuming all else constant, what will happen to woodsburgs weighted average cost of capital (WACC) if its marginal tax rate increases?

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1 points QUESTION 12 Woodsburg's capital structure is 60% equity and 40% debt. Assuming all else constant, what will happen to Woodsburg's weighted average cost of capital (WACC) if its marginal tax rate increases? Depends on whether the tax rate is higher or lower than the low debt ratio B. WACC decreases OC WACC remains the same OD. Depends on relative magnitudes of debt and equity OL WACC increases