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The ratio reveals that the organization will almost certainly increase extra debts on account of The rationale of growth and credit card debt funding is much less expensive than that equity financing. The WACC will definitely drop due to less expensive cost of personal debt and tax cost savings to visit the site the corporation on payment of interest to personal debt holders.

Place on your own inside the footwear of your case protagonist, and have that person's problems. Question oneself: What simple trouble is this executive endeavoring to take care of?

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