13.Which of the following statements is CORRECT?

a. Flotation costs associated with issuing new common stock normallyreducethe WACC.

b. WACC calculations should be based on thebefore-taxcosts of all the individual capital components.

c. A change in a company's target capital structure cannot affect its WACC.

d. If a company's tax rate increases, then, all else equal, its weighted average cost of capital willdecline.

e. An increase in the risk-free rate will normallylowerthe marginal costs of both debt and equity financing.