All Else Held Constant,which One of These Is Most Apt

question 12

Multiple Choice

All else held constant,which one of these is most apt to increase the WACC of a levered firm?

• A)An increase in the weight of debt
• B)A decrease in a firm's equity beta
• C)A decrease in the dividend growth rate
• D)A decrease in the tax rate
• E)An increase in the risk-free rate when the equity beta exceeds 1.0

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Definitions:

Recessive Disorder

A genetic disorder that requires an individual to inherit two copies of a defective gene, one from each parent, for the condition to develop.

Sickle Cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape, leading to various health complications such as pain and anemia.

Tay-Sach's Disease

A hereditary disorder affecting infants, characterized by the absence of a vital enzyme, resulting in the accumulation of fatty substances in the nervous system, leading to death usually by the age of four.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by developmental and intellectual delays.