QUESTION 38 The after-tax cost of which of the following are affected by a change in the firm's tax rate? 1. preferred stock II. debt III. equity IV. weighted average cost of capital (WACC) O AI and ill only B. ll and only OC, 11. ll, and IV D.Lll, and IV only E. 11, 11, and I only QUESTION 39 If a firm has a 100 percent dividend payout ratio, then the internal growth rate of the firm is: O A negative B. zero percent infinite D. 100 percent E equal to the ROA Which of the following will decrease the future value of a lump sum investment made today, assuming that all interest is reinvested and that the interest rate is positive? 1. Increase the interest rate II. Decrease in lump sum amount III. Increase in the investment time period IV. Decrease in the investment time period AI and IV only B. 11 and IV only I and III only D-L, II and III only E II and III only