Which of the Following Is Least Likely to Lead to a Break

Multiple Choice

Which of the following is least likely to lead to a break point in the marginal cost of capital schedule?

A) an increase in the required return demanded by investors for a new bond issue.
B) increased flotation costs associated with seasoned equity offerings.
C) decreased liquidity in money markets leading to lower selling prices for commercial paper.
D) using retained earnings to fund new projects for the firm.
E) issuing preferred stock to institutional investors.