Which of the following statements is CORRECT?
If a company's tax rate increases but the YTM on its noncallable bonds remains the same, the after-tax cost of its debt will fall.
All else equal, an increase in a company's stock price will increase its marginal cost of new common equity, re-
When calculating the cost of preferred stock, a company needs to adjust for taxes, because preferred stock dividends are deductible by the paying corporation.
All else equal, an incresse in a company's stock price will increase its marginal cost of retained carnings, rs
Which of the following statements is CORRECT? O If a company's tax rate increases but the YTM on its noncallable bonds remains the same,the after-tax cost of its debt will fall O All else cqual, an increase in a company's stock price will increase its marginal cost of new common cquity,re O When calculating the cost of preferred stock, a company nccds to adjust for taxes, because preferred stock dividends are deductible by the paying corporation. OAll else equal, an increase in a company's stock price will increase its marginal cost of retained carnings,rs