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.

---

Definitions:

Pillsbury Bake-Off

A cooking contest, initiated in 1949, where contestants from across the United States compete by preparing original recipes with predefined products from the Pillsbury Company.

Product Usage

Product usage concerns how consumers interact with and utilize a product, including frequency, purpose, and manner of use.

Contest

A competition where individuals or groups compete for a prize or recognition.

Doritos

a brand of flavored tortilla chips produced by Frito-Lay, a division of PepsiCo.