Due to Changes in Regulatory Requirements,the Transactions Costs Associated with Selling

Multiple Choice

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

A) cause the cost of capital to decrease.
B) cause the cost of capital to increase.
C) have no effect on the cost of capital because transactions costs are expensed immediately.
D) cause the cost of capital to decrease only if investors may be billed for part of the increase in transactions costs.