The weighted average cost of capital formula (WACC) shown below is the accepted method of computing a firms cost of capital.

WACC_adj = E x R_e + PS x R_ps + D x R_d 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, and your reading assignments, in a one paragraph posting (50 -75 words), answer each the following questions and provide a short supporting rationale for each question. The answer does not require a quantitative solution but where applicable formulas can be used to support your answers

What impact will the following company actions have on the companys weighted average cost of capital:

An Increase in the companys corporate tax rate?

An Increase in the companys flotation cost?

An increase in the companys dividend?