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Which of the following statements is correct? a. since debt financing is cheaper than equity financing, raising a company's debt ratio will alwaysreduce its wacc. b. increasing a company's debt ratio will typically reduce the marginal cost of both debt and equityfinancing. however, this action still may raise the company's wacc.*c. increasing a company's debt ratio will typically increase the marginal cost of both debt and equityfinancing. however, this action still may lower the company's wacc.*d. since a firm's beta coefficient it not affected by its use of financial leverage, leverage does notaffect the cost of equity. e. since debt financing raises the firm's financial risk, increasing a company's debt ratio will alwaysincrease its wacc.
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Which of the following statements is correct? a. since debt financing is cheaper than equity financi...
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