Question 14 Assuming no change to a company's overall risk level, if a project's return is less than the company's cost of capital a) It should increase the company's stock price (build shareholder wealth) Ob) It should maintain the company's stock price (maintain shareholder wealth) c) It should decrease the company's stock price (destroy shareholder wealth) d) We can't predict its impact on the company's stock price Question 15 The cost of new common equity will a) Increase as flotation costs increase b) Decrease as flotation costs increase c) Increase as flotation costs decrease d) Increase as the tax rate increases