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Which of the following consequences of increasing the debt of the firm causes the WACC...

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Accounting

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Which of the following consequences of increasing the debt of the firm causes the WACC to increase? I) Debtholders having a prior claim to stockholders iI) Interest rate tax shield III) The increased risk of bankruptcy IV) The cost of debt being less than the cost of equity I and II I. II, and IV I, III, and IV I and III II and IV

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