Other things equal, an increase in the firm's tax rate will increase the WACC for a firm that has both debt and equity financing.

Name: Other things equal, an increase in the firm's tax rate will increase the WACC for a firm that has both debt and equity financing.
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An increase in the firm's tax rate actually decreases the cost of debt due to the tax deductibility of interest, which can lower the Weighted Average Cost of Capital (WACC) since the after-tax cost of debt is part of the WACC calculation.

Other Things Equal, an Increase in the Firm's Tax Rate