Which of the following statements is most comprehensive in relation to the WACC?

a. The WACC is a weighted average of the project’s cost of equity and debt with the cost of debt multiplied by (1 − Tc) where Tc is the corporate tax rate.

b. The WACC is a weighted average of the project’s cost of equity and debt with the cost of debt multiplied by Tc where Tc is the corporate tax rate.

c. The WACC is theoretically independent of leverage with no corporate tax, but theoretically declines with leverage allowing corporate tax.

d. Statements a and c are both valid statements.