A company's weighted average cost of capital (W'ACC) is best described by which of the following statements? A. B. The cost of capital is the cost of raising specic sources of hands in nancial markets today. The weighted average cost of capital is the return earned and paid on a company's securities in the past. The cost of capital is the required return on new company securities today independent of where the MS are invested. The weighted cost of capital is the minimum acceptable return on any current average risk project under consideration today. Which of the following statements are TRUE? 53'0de 25?\" The cost of preferred stock is computed the same as a perpetuity. The aertax cost of debt generally decreases when tax rates decrease. The cost of equity is unaffected by changes in the market risk premium. The aertax cost of debt generally increases when bond prices decline. I and 11 only I and IV only ll and HI onlyI[ and IV only The cost of retained earnings is less than the cost of new common stock because A. B. C. D. marginal tax brackets increase. dividends are not tax deductible. otation costs are incurred when new stocks are issued. accounting rules allow a deduction when using retained earnings. 4. Which of the following costs needs to apply a tax adjustment to its yield measure? A Cost of debt. B. Cost of common equity. C. Cost of preferred stock. D. Cost of retained earnings. 5. A firm has concluded that its financial risk premium is too high in its capital structure. In order to decrease this, the firm can increase short-term debt to decrease the cost of capital. B. increase the proportion of long-term debt to decrease the cost of capital. increase the proportion of common stock equity to decrease financial risk. decrease the proportion of common stock equity to decrease financial risk