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Unanswered Question 13 0/1 pts ABC Inc. has always paid out all of its earnings...

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Unanswered Question 13 0/1 pts ABC Inc. has always paid out all of its earnings as dividends, and this same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity, its target capital structure consists of common stock, preferred stock, and debt. Which of the following events would INCREASE its WACC? The flotation costs associated with issuing new common stock decrease The company's beta decreases, Expected inflation remains constant. Bankruptcy cost increases. 1/1 pts Question 14 0/1 pts Unanswered Question 30 Assume the firms WACC is 10%, and the projects are mutually exclusive and have the same risks and size. Also assume that the projects being considered have normal cash flows, with one outflow followed by a series of inflows. a. If project As IRR is 12% and project BS IRR is ....., then project A should be accepted. 11% 13% 1296 10% 996 Quiz Score: 15

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