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The tax fee is usually thought of at enough time undertaking the fairness beta or asset calculation as it represents the tax conserving from financial debt funding. The tax rate for Midland is 40% as laid out in the case.

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Significant gearing decreases the WACC, but It's not necessarily constantly the case. Occasionally the financial debt funding is substantial ample that case the rise in the price of fairness nullify the credit card debt funding impact on WACC or occasionally it boosts the WACC in case of greater credit card debt funding.

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