Which One of the Following Changes Would Tend to Increase

question 8

Multiple Choice

Which one of the following changes would tend to increase the WACC for a traditional firm?

• A) Decrease the proportion of equity financing
• B) Increase the market value of the debt
• C) Decrease the proportion of debt financing
• D)Decrease the market value of the equity

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Definitions:

Tax Deductible

Expenses that can be subtracted from one's gross income, reducing taxable income and the amount of tax owed.

Hand Gestures

Movements of the hands and arms used to convey ideas or messages, often accompanying speech or as a form of non-verbal communication.

Positive Attitude

An outlook that focuses on the good in situations or expectations of positive outcomes.

Frequent Use

Regular engagement or application of a service, product, or facility.