Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) The weighted average cost of capital for a given capital budget level is a weighted average of the marginal cost of each relevant capital component which makes up the firm's target capital structure.
B) The weighted average cost of capital is calculated on a before-tax basis.
C) An increase in the risk-free rate is likely to increase the marginal costs of both debt and equity financing.
D) Answers a and c are correct.
E) All of the answers above are correct.