Question: FIN 3 7 0 - 3 0 1 0 / If the tax rate increases, what effect does it have on WACC ( Weighted Average

FIN370-3010/ If the tax rate increases, what effect does it have on WACC (Weighted Average Cost of Capital)?
WACC remains unchanged because taxes don't affect WACC.
WACC increases because the cost of equity rises.
WACC decreases because the tax savings from having debts increases.
WACC becomes zero due to the higher tax rate.
FIN 3 7 0 - 3 0 1 0 / If the tax rate increases,

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