Economics · Cost of Capital
Which of the following would increase a company's WACC?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Reduction in gearing ratio
- 2Increase in market risk premium✓
- 3Increase in proportion of low-cost debt
- 4Increase in corporate tax rate
Correct answer
Increase in market risk premium
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