Question: Everything else being equal a lower corporate tax rate a. will not affect the WACC of a firm with debt in its capital structure b.

Everything else being equal a lower corporate tax rate

a.

will not affect the WACC of a firm with debt in its capital structure
b.

will decrease the WACC of a firm with only equity in its capital structure
c.

will decrease the WACC of a firm with some debt in its capital structure
d.

will increase the WACC of a firm with debt and equity in its capital structure

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