Burnham Brothers Inc. has no retained earnings since it hasalways paid out all o

Burnham Brothers Inc. has no retained earnings since it hasalways paid out all of its earnings as dividends. This samesituation is expected to persist in the future. The company usesthe CAPM to calculate its cost of equity and its target capitalstructure consists of common stock preferred stock and debt.Which of the following events would REDUCE its WACC?