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Good Life Inc.'s asset is financed with 65% common stock, 8% preferred stock, and 27%...

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Good Life Inc.'s asset is financed with 65% common stock, 8% preferred stock, and 27% debt. The earnings retention ratio is 60%, the equity beta is 1.62 , and company pays a corporate tax rate of 21%. Which one of the following statements is incorrect? The weighted average cost of capital will remain the same if the company use the same combination of common stock, preferred stock, and debt. The cost of equity is unaffected by a change in the company's tax rate. The current yield-to-maturity on the company's bonds will be greater than the after-tax cost of debt. The company's cost of common stock is most likely higher than the company's actual cost of debt. The cost of equity can be estimated using the capital asset pricing model

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