Question: Effect on r ( d ) ( 1 - T ) r ( s ) WACCaThe corporate tax rate is loweredbThe Federal Reserve tightens credit.

Effect onr(d)(1-T)r(s)WACCaThe corporate tax rate is loweredbThe Federal Reserve tightens credit.cThe firms uses more debt.dThe firm doubles the amount of capital it raises during the year.eThe firm expands into a risky new area.fInvestors become more risk averse.

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