Use the information to answer the following questions. The Global Advertising Company has a marginal tax rate of 40%. . The company can raise debt at a 8% interest rate. . The last dividend paid by Global was $1.10. Global's common stock is selling for $7.93 per share, and its expected growth rate in earnings and dividends is 4%. . Global plans to finance all capital expenditures with 20% debt and 80% equity. What is the after-tax cost of debt for the company? Continued from previous question. Assume that the floatation cost of new stock issuing is 1.5%. What is Global's cost of common stock if it has to issue new common stock? Select one: a. 16.23% X b. 17.78% c. 18.65% d. 19.65% e. 17.99% Which of the following statements about the cost of capital is INCORRECT? Select one: a. WACC should be calculated based on the market value instead of the book value. b. The reason we must assign a cost of capital to retained earnings involves the opportunity cost principle. c. Weighted average cost of capital calculations should be focused on the after-tax costs. d. WACC should be calculated based on the marginal costs instead of the historical costs. e. A company's target capital structure does not affect its weighted average cost of capital. Which of the following statements about the cost of capital is CORRECT? Select one: a. Both the cost of debt and equity financing will decrease when a firm increases its debt/asset ratio. b. Both the cost of debt and equity financing will increase when a nuclear plant company encounters a ban on nuclear power generation in certain states. c. The WACC of a firm will decrease when investors become more risk averse. d. Both the cost of debt and equity financing will decrease when a firm expands into a risky new area. e. Both the cost of debt and equity financing will decrease when the Federal Reserve tightens credit