If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC.

Name: If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC.
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An increase in the marginal tax rate reduces the after-tax cost of debt, as interest payments are tax-deductible, thus lowering the weighted average cost of capital (WACC).

If a Firm's Marginal Tax Rate Is Increased, This Would