Assume the cost of equity for a firm exceeds the firm's pretax cost of debt.Given this assumption,an increase in which of the following will increase the firm's WACC?
I.tC
II.debt-to-equity ratio
III.RB × (1 - tc)
IV.Rs
A) I and IV only
B) II and III only
C) III and IV only
D) I,III,and IV only
E) I,II,III,and IV
Correct Answer:
Verified
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