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The CFO of Cynergy Inc

Question 41

Multiple Choice

The CFO of Cynergy Inc.decides to recalculate the company's WACC based on higher growth expectations for the firm, thus making the new WACC:


A) Lower than the previous WACC because the cost of debt decreases.
B) Lower than the previous WACC because the cost of equity decreases.
C) Higher than the previous WACC because the cost of debt increases.
D) Higher than the previous WACC because the cost of equity increases.

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