Which of the following statements is CORRECT? Flotation costs associated with issuing new common stock normally reduce the WACC of a company's tax rate decreases, then, all else equal, its weighted average cost of capital will declino. WACC calculations start with the before-tax costs of all the Individual capital components and then adjust debt to reflect after tax cost An increase in the risk free rate will normally lower the marginal costs of both debt and equity financing. A change in a company's target capital structure cannot affect its WACC QUESTION 2 A constant growth stock's price increases 4% per year. The stock is selling for $144 and has an investor required return of 11 How much will next year's dividend be? $ (to two decimal places)