The weights in the weighted average cost of capital represent the for a project. capital structure risk weights (betas) economies of scale market risk premia Suppose Congress increases corporate tax rates next year to 55%. The likely effect (if other factors don't change) is a decrease in the firm's cost of debt. True False The actual market price of a stock at a given point in time is determined by the marginal investor the stock exchange the Federal Reserve investment banks Which of the following would support using internally generated funds, according to the text? avoiding the cost of newly issued securities funds generated by the firm involve no opportunity cost the firm is able to hide negative financial results that would be embarrassing to disclose all of the above A breakpoint occurs because the firm exhausts a cheaper form of a funding component the asset is fully depreciated, but still may have a salvage value the initial investment is recovered within the horizon window the funds are too costly to raise in the current market