Need business and finance help with the Weighted Average Cost of Capital 4

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What is the effect on WACC when an organization raises long-term capital?

Dec 1st, 2015

Thank you for the opportunity to help you with your question!

By increasing equity the firm may lose the tax advantage of increased debt accordingly increasing the necessary rate of return

Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 1st, 2015

Thank you! Can you provide an example?

Dec 1st, 2015

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Dec 1st, 2015
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