Question 2 (5 points) Anderson Steel Inc. has no retained earnings since it has always paid out all of its earnings as dividends. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, and its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would NOT affect its WACC? A) The flotation costs associated with issuing new common stock decrease. B) The company's beta decreases. C) Expected inflation decreases. D) The market risk premium increases. E) None of the above