No explanation needed

1. Which one of the following will decrease the current market price of a stock?

A. Decrease in the required return

B. Decrease in the expected dividend for next year

C. Increase in the capital gains yield

2. XYZ Inc. has a cost of common stock of 14%, a cost of preferred stock of 10% percent, an after-tax cost of debt of 4%, and a tax rate of 21%. Given this, which one of the following will reduce the firm's WACC, given that its PE ratio is equal to 24?

A. Decreasing XYZ's beta

B. Repurchasing shares of common stock

C. Increasing the debt-equity ratio