Question: Question 3, Short Answer E: Raya Corp. is changing its capital structure (target debt to equity ratio). In calculating WACC, we assume this only changes

Question 3, Short Answer E: Raya Corp. is changing its capital structure (target debt to equity ratio). In calculating WACC, we assume this only changes the weights used in the calculation. However, in our discussions (videos), we discussed how this change might affect other parts of the WACC calculation. What else might change in the WACC calculation, why would it change, and what factors would influence this? (10 marks)

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