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Which of the following statements about the cost of capital is CORRECT? Both the cost of debt and equity financing will decrease when a firm

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Which of the following statements about the cost of capital is CORRECT? Both the cost of debt and equity financing will decrease when a firm expanch into a risky new area. Both the cost of debt and equity francing will decrease when a nuclear plant company encounters a ban on muclear power generation in certain states. The WACC of a fiem will increase when investors become moce risk averse. Both the cost of debt and equity financing will decrease when the Federal Reserve tightens eredit. Both the cost of debt and equity financing will decrease when a firm increases its debt/asset ratio

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