The lower the firm's tax rate, the lower will be its after-tax cost of debt and also its WACC, other things held constant.

Name: The lower the firm's tax rate, the lower will be its after-tax cost of debt and also its WACC, other things held constant.
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Question

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A lower tax rate increases the after-tax cost of debt because the tax shield from interest payments is reduced, potentially increasing the WACC if other factors remain constant.

The Lower the Firm's Tax Rate, the Lower Will Be