question one:All else equal, an increase in beta results in Select one:

a. an increase in the cost of retained earnings.

b. an increase in the after-tax cost of debt.

c. an increase in the cost of common equity, whether or not the funds come from retained earnings or newly issued common stock.

d. an increase in the cost of newly issued common stock .

question 2:Due to changes in regulatory requirements, the transactions costs associated with selling corporate securities increased by $1 per share. This change will Select one:

a. cause the cost of capital to increase.

b. have no effect on the cost of capital because transactions costs are expensed immediately.

c. cause the cost of capital to decrease only if investors may be billed for part of the increase in transactions costs.

d. cause the cost of capital to decrease.