Question 7 (2 points) Listen XYZ anticipates earning $2,000,000 and paying $200,000 in dividends this year. XYZ's capital structure is 20% debt and 80% equity and its tax rate is 35%. Compute the equity breakpoint to the nearest dollar. Your Answer: Answer Question 8 (2 points) Listen What impact do flotation costs have on the cost of common equity? None. The cost of retained earnings and new stock must be the same since they both represent the same claim by shareholders. It makes new stock less expensive compared to retained earnings. It makes new stock more expensive compared to retained earnings