11. Factors that affect the cost of capital equation Each of the following factors affects the weighted average cost of capital (WACC) equation. Which are factors that a firm cannot control? Check all that apply. The firm's dividend payout ratio The firm's capital structure The general level of stock prices Tax rates The impact of cost of capital on managerial decisions Anderson Animations Corporation has two divisions, L and H. Division L is the company's low-risk division and would have a weighted average cost of capital of 10% if it was operated as an independent company. Division H is the company's high-risk division and would have a weighted average cost of capital of 16% if it was operated as an independent company. Because the two divisions are the same size, the company has a composite weighted average cost of capital of 13%. Division L is considering a project with an expected return of 11.5%. Anderson Animations Corporation should the Division L's project because its return is the risk-based cost of capital the division