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Question 16 of 20 2.5 Points A company with no retained earnings uses the CAPM to calculate the cost of equity capital. The company's capital
Question 16 of 20 2.5 Points A company with no retained earnings uses the CAPM to calculate the cost of equity capital. The company's capital structure consists of common stock, preferred stock, and debt. Which of the following events will reduce the company's WACC? O A. A reduction in the market risk premium B. An increase in the fotation costs associated with issuing new common stock. OC. An increase in the companys beta. D. An increase in expected inflation. E. An increase ithe fotation costs associated with issuing preferred stock
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