Assume that a firm's total dollar capital budget is fixed and will not be changed. Which of the following will increase the retained earnings break point, i.e., increase the dollar amount of total capital at which the WACC will increase due to having to issue new common stock?

AThe firm's net income increases.

BThe firm increases its dividend payout ratio.

CThe firm increases the percentage of equity in its target capital structure.

DThe risk of the average capital budgeting project increases.

EThe risk of the average capital budgeting project decreases.