Other things being equal, explain how the following events would affect the company’s weighted average cost of capital: (a) The corporate income tax rate is increased/ decreased. (b) The company has...

Other things being equal, explain how the following events would affect the company’s weighted average cost of capital:

(a) The corporate income tax rate is increased/ decreased.

(b) The company has started making substantial new investments in assets that are considerably riskier than the company’s presently owned assets.

(c) The company begins to make use of substantial amounts of debt to finance its new projects.

(d) The company has repaid its long-term debts.

(e) Flotation costs of issuing new securities increase/ decrease.