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Can one minimize WACC when there is a constraint on raising debt? If so, how? What are the effects of a corporate tax on the WACC of a business?

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I am doing some research on WACC and the effects it has on debt. Can you please help me understand this subject by answering the following questions?

Can one minimize WACC when there is a constraint on raising debt? If so, how?

What are the effects of a corporate tax on the WACC of a business?

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Can one minimize WACC when there is a constraint on raising debt? If so, how?

The traditional view of WACC assumes that:
a) As the level of debt financing increases the cost of debt remains unchanged up to a ...

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Manal Elkhoshkhany, MBA
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  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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