Question 9 A corporation still incurs a "cost" of existing debt or existing equity due to: fixed costs sunk costs variable costs opportunity costs Question 5 All else being held equal, if a company's flotation costs associated with selling corporate securities decrease, the company's cost of capital will increase decrease stay the same Question 1 When calculating a corporation's cost of capital, we need to account for the following factors compared to investors' required rate of return corporate taxes and the earned Income tax credit individual taxes and corporate taxes. individual taxes and dividends. O corporate taxes and flotation costs