The correct answer is D. all of the above.
A company’s capital structure is the mix of debt and equity financing that it uses to fund its operations. The dividend policy is a company’s decision on how much of its earnings to distribute to shareholders in the form of dividends. The investment policy is a company’s decision on how much money to invest in new projects.
All of these factors can affect a company’s capital cost. For example, if a company takes on more debt, its interest expense will increase, which will increase its cost of capital. If a company pays out more dividends, it will have less money to invest in new projects, which could also increase its cost of capital. And if a company invests in more risky projects, its cost of capital will also increase.
Therefore, a company can affect its capital cost through its policy of capital structure, its policy of dividends, and its policy of investment.