xam lI (ch 9, 10, 11, 12 &13) Time Remaining: 164 minutes Back to Assignment Dea Attempts: Score: /2.5 7. Chapter b Multiple Choice 09-75, Section b Multiple Choice 09-75, Problem b Multiple Choice 09-75 Which of the following statements is CORRECT? O a. All else equal, an increase in a company's stock price will increase its marginal cost of reinvested eamings (not newly issued stock), rs b. All else equal, an increase in a company's stock price will increase its marginal cost of new common equity, re O c. Since the money is readily available, the after tax cost of reinvested garnings (not newly issued stock) is usually much lower than the after tax cost of debt. d. If a company's tax rate increases but the YTM on its noncallable bonds remans the same, the after-tax cost of its debt will fall. e. When calculating the cost of preferred stock, a company needs to adjust for taxes, because preferred stock dividends are deductbble by the paying corporation Continue without saving Seci Copyright Notices Terms of Use Privacy Notice Type here to search