Which One of the Following Will Increase the WACC of a fiRm

question 246

Multiple Choice

Which one of the following will increase the WACC of a firm?

• A) An increase in the marginal tax.
• B) An increase in the debt-equity ratio.
• C) An increase in the risk-free rate of return.
• D) A decrease in the level of risk of a project.
• E) A decrease in the yield-to-maturity of the bonds.

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Definitions:

Vision

The ability to perceive the environment through light in the visible spectrum reflected by objects, processed by the eyes and interpreted by the brain.

Nerve Tissue

Specialized tissue that makes up the nervous system, transmitting signals between the brain and other parts of the body.

Neurons

Unique cells in the nervous system designed to transfer information using electrical and chemical signals.

Involuntary Processes

Bodily functions and responses that occur without conscious control, such as breathing and heart rate.