QUESTIONS cost of equity 10-1 if the factor would ime for each ost of debt, r.(1 T); its cost of How would each of the following affect a firm's COS ry; and its WACC? Indicate by a plus (+ CC? Indicate by a plus (+), a minus (-), or a zero (0) if the factor on the item in question. Assume for raise, lower, or have an indeterminate effect on the iter though in some instances this would answer that other things are held constant, even thoug swer, but recognize that several of probably not be true. Be prepared to justify your answe the parts have no single correct answer; these questions are des these questions are designed to stimulate thought and discussion. FFFFCT ON Chapter 10 The Cost of Capital 351 EFFECT ON , Tak1 - ) WACC The firm is an electric utility with a large investment in nuclear plants. Several states are considering a ban on nuclear power generation