Which of the following is not associated with the cost of capital concept?

A. Minimum rate of return on new projects.

B. Weighted average of cost of new funds raised.

C. The required rate of return of investors.

D. The historical cost of funds.

Which of the following is likely to increase a firm's cost of capital?

A. Increasing the proportion of equity in the firm.

B. Increasing the proportion of debt in the firm.

C. The consideration of a below-average risk project.

D. Expectation of lower inflation in the future.