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The personal debt financing should be realistic that decrease the WACC otherwise it can be worthless to take excess gearing risks.

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Higher gearing cuts down the WACC, but It's not at all usually the case. In some cases the personal debt financing is significant enough that case the increase in the price of equity nullify the personal debt funding effect on WACC or from time to time it raises the WACC in case of greater financial debt financing.

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