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Everything Else Being Equal a Higher Corporate Tax Rate

Question 11

Multiple Choice

Everything else being equal a higher corporate tax rate...


A) will increase the WACC of a firm with debt and equity in its capital structure
B) will not affect the WACC of a firm with debt in its capital structure
C) will decrease the WACC of a firm with some debt in its capital structure
D) will decrease the WACC of a firm with only equity in its capital structure

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