23) Smith Brothers has no retained earnings. The company uses the CAPM to calculate the cost of equity capital. The of common stock, preferred stock, and debt. Which of the following events com reduce the company's W A. An increase in the flotation costs associated with issuing preferred stoek. B. An increase in the flotation costs associated with issuing new common stock. C. An increase in the company's beta. D. An increase in the market risk premium. E. A decrease in expected inflation