Schalheim sisters inc. has always paid out all of its earnings as dividends; hence, the firm has no retained earnings. this same situation is expected to persist in the future. the company uses the capm to calculate its cost of equity, and its target capital structure consists of common stock, preferred stock, and debt. which of the following events would reduce its wacc? the market risk premium declines. the flotation costs associated with issuing new common stock increase. the company's beta increases. expected inflation increases. the flotation costs associated with issuing preferred stock increase.

At april 1, 2019, the food and drug administration is in the process of investigating allegations of false marketing claims by hulkly muscle supplements. the fda has not yet proposed a penalty assessment. hulkly’s fiscal year ends on december 31, 2018. the company’s financial statements are issued in april 2019. required: for each of the following scenarios, determine the appropriate way to report the situation. 1. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 2. management feels an assessment is reasonably possible, and if an assessment is made an unfavorable settlement of $13 million is probable. 3. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is reasonably possible. 4. management feels an assessment is probable, and if an assessment is made an unfavorable settlement of $13 million is probable.