What is ? Question 5: $500 This characteristic of investors determines the market risk premium, a firm's cost of common equity, and its WACC. You are now in the final round of the game. This is the Show-Off round. Each question has three correct answers, and each will earn you $1,000. Select the three correct responses from those provided to complete the question. Show-off Round: $1,000 If a firm wants to influence its WACC, which of the following three factors can a firm not manipulate? Investors' risk aversion The allowances, deductions, and rates applied by Congress to the U.S. tax system Conditions in the stock and bond markets, which include the price level of the securities traded in the markets and their corresponding interest rates The proportion and form of earnings distributed to the firm's shareholders Its investment policy