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If my WACC is 10% and I issue more bonds at 6% my Marginal Cost of Capital Will stay the same Will go up Will go down O Could go up or down
If my WACC is 10% and I issue more bonds at 6% my Marginal Cost of Capital Will stay the same Will go up Will go down O Could go up or down
Expert Solution
Will go down
As more debt is issued at rate less than WACC so marginal rate will decrease
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