A company may not want to use more debt in its capital structure since a the cost of debt is always higher than the cost of common equity [.e., (1-1) >rs for any given firm. b. doing so could cause the component costs of debt and equity [both (1-1) and rs) to rise. Both of the above d. Neither of the above Suppose u tim has been earning a retum on cquity (ROE) OF 12 percent and retaining 70 percent or its earnings he is dividend payout ratio is 30 percent). In this situation is expected to continua indefinitely, what would be a reasonable estimate of the company's future growth rate in dividends? 5.6.79 63.6% 8.49 6.12.09 49 The Roman Company's currently outstanding bonds have a 147 percent coupon and a 62 percent yield to minimity. Rodean believes it could isste new bands at par that would provide a similar yield to maturity fits marginal tax rate is a percent, whats Rodmananerar com ordet 14.709 6.6.209 9.56% 04.05 De 5.1594