Montreal Trustco expects to pay a dividend of $5 next year. Dividends are expected to grow at 3 percent forever and the market requires a rate of return of 7 percent on its stock. Montreal Trustco can issue new stock at $125 per share with flotation costs of $20 per share. The tax rate is zero. The cost of issuing new equity to Montreal Trustco is: O 3.00% 7.00% 7.76% O 11.76% Calculate the cost of issuing new equity for a firm, assuming issue costs are 6 percent of the share price after taxes; market price per share = $44; current dividend = $4.25; and the constant growth rate in dividends is 4 percent. (Round answer to 2 decimal places, e.g. 15.75%.) Cost Cynergy Inc. currently has a debt-equity ratio of 0.70, an after-tax cost of debt of 7.5%, and a cost of equity of 14%. If the firm changes its debt-equity ratio to 0.40, it will: O Decrease the firm's WACC. O Increase the firm's total debt. Cause the NPV of projects under consideration to decrease. Not have an effect on the firm's capital budgeting decisions