The weighted average cost of capital formula (WACC) shown below is the accepted method of computing a firms cost of capital. WACCadj = E x Re + PS x Rps + D x Rd X (1 - Tc) V V V Where: E = Equity dollars of financing PS = Preferred Stock dollars of financing D = Debt (bond) dollars of financing V = Total financing = E +PS +D Re = % Cost of Common Stock Rps = % Cost of Preferred Stock Rd = % Cost of Debt after tax Tc = Effective tax rate After reviewing this formula, your reading assignments and the instructors PowerPoint presentation, in a one paragraph posting, answer the following questions and provide a short supporting rationale for each answer. The answer does not require a quantitative solution What impact will the following company actions have on the companys weighted average cost of capital (WACC): 1. An Increase in the companys corporate tax rate? 2. An Increase in the companys flotation cost? 3. An increase in the companys dividend? Can you demonstrate your answer mathematically?