Shareholders often sell their shares when a company's return does not meet expectations. When shareholders sell, the stock price falls, all else equal. When the stock price falls, the company's cost of equity capital:

A.rises because a falling stock price increases the risk to bond holders

B.falls because lower share prices means a higher dividend yield

C.rises because more shares will have to be sold to raise the same amount of capital

D. falls because shares become less expensive to repurchase