Other Things Equal,which of the Following Will Decrease the WACC

question 3

Multiple Choice

Other things equal,which of the following will decrease the WACC of a firm that has both debt and equity in its capital structure?

• A) An increase in the stock's beta
• B) An increase in the expected market return
• C) An increase in the tax rate
• D) An increase in the yield on preferred stock

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Definitions:

Selective Hiring

The practice of rigorously screening and selecting candidates for employment to ensure they align with the company's culture and objectives, often seen as critical for maintaining high standards and performance.

Competitive Pay

A salary or wage structure designed to attract and retain employees by matching or exceeding the compensation offered by competing firms.

Competitive Advantage

A situation or factor that gives a business a competitive edge or advantage over its rivals.

Resource-Based View

A strategic management theory that emphasizes the importance of an organization's internal resources and capabilities in achieving competitive advantage.