7. 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 can control? Check all that apply Tax rates The general level of stock prices The firm's dividend payout ratio The firm's capital structure The impact of cost of capital on managerial decisions Marston Manufacturing Company 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 8% if it was operated as an independent company, Division is the company's high-risk division and would have a weighted average cost of capital of 14% 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 11%. Division L. ls considering a project with an expected return of 9.5% the Division L's project because its return is the risk-based cost of capital for Marston Manufacturing Company should the division