Which of the following statements is not correct? A) Net present value increases as the cost of capital increases B) Risk is important in estimating the cost of capital. C) The dividend growth model for estimating the cost of equity capital is extremely sensitive to dividend 6. growth rate 7. Rattle me Bones, Inc. sold a 25-year bond issue 10 years ago. It pays a 10% annual coupon rate compounded semi-annually and has a $1,000 face value. If the current price per bond is $989, what is the firm's after-tax cost of debt if the firm's tax rate is 35% and the floatation cost is 1% of the current market price? A) 8.05% B) 5.60% C) D) 6.68% 7.73%