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:

Judith Sargent Murray

A writer and early feminist thinker prominent in the years following the American Revolution.

Equality of the Sexes

The belief in and advocacy for equal rights and opportunities for men and women, rejecting discrimination based on sex.

Superiority

The state, quality, or condition of being superior or higher in quality, rank, or importance.

Democratic-Republic Society

An organization or society that advocates for principles of democracy and republicanism, emphasizing the importance of popular sovereignty and the rule of law.