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Which One of the Following Will Affect the Capital Structure

Question 17

Multiple Choice

Which one of the following will affect the capital structure weights used to compute a firm's weighted average cost of capital?


A) Decrease in the book value of a firm's equity
B) Decrease in a firm's tax rate
C) Increase in the market value of the firm's common stock
D) Increase in the market risk premium
E) Increase in the firm's beta

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