Quiz Ch 10 – Schalheim Sisters Inc.

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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In the case of Schalheim Sisters Inc., a company with a history of paying out all earnings as dividends and using the CAPM for the cost of equity calculations, which of the following scenarios would result in a DECREASE in its Weighted Average Cost of Capital (WACC)?

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