Debt without changing the cost of debt or equity

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Jefferson International’s debt is less expensive than its equity. If it could issue more debt without changing the cost of debt or equity, which of the following would occur? A. Jefferson’s WACC would decrease. B. The NPVs of Jefferson’s projects would be higher. C. Jefferson would pay more in interest expense. D. Jefferson’s stock price would increase. E. All of the above are correct.

Reference no: EM13944540

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