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Based on your understanding of the concept of cost of capital, which of the following statements are valid? Check anf that spply. Short-term debt such

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Based on your understanding of the concept of cost of capital, which of the following statements are valid? Check anf that spply. Short-term debt such ath accounts payable or short-term loans are not considered capital components. Preferred stock is not baken into account when considering the costs related to investor-supplied capital. Companies are fnanced by several sources of Investor-supplied capital, which are called capital components. Companies often finance their new projects with capital that comes from retained eamings. This also constututes investor-supplied coptal. Blue Oyster Seafood Conpany bas two divisions: one is very risky, and the other exhibits significantly less risk. The company ases its investors' overall required rate of return to evaluate its investment projects, It is most likely that the firm will becarne: Less risky over time, and its value wit decrease Riskier over time, and its value will decrease: Less risky over timej and zes value will increase Riskier over time, and its value will increase. Which of the following statements is correct? A firm's weighted average cost of capitalshould decrease if its tax rate increases; but the yield to maturity of its noncaliable bonds remains the same and ali other factors are held constant. The market value of a firm's debt and equity will continuousty change throughout the day, but the book value of debt and equity tends to stay more stable over time. Consequently, the firm should use the book-value weight to define its optimal capital structure. If a firm wants to lower ats cost of debt, it can simply issue debt with a lower coupon rate

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