1. Unmeatable, a vegetarian meat substitute making company, has always paid out its earnings as dividends, hence the firm has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would DECREASE its WACC?

   	A.	The market risk premium declines.
   	B.	None of the above.
   	C.	Unmeatable decides to grow its main business line.
   	D.	Unmeatable decides to begin work on a new highly risky project.
   	E.	The companys beta increases.