14. Which of the following statements is most correct? A. The weighted average cost of capital is calculated on a before-tax basis. B. An increase in the risk-free rate is likely to increase the marginal costs of both debt and equity capital financing C. WACC for a given capital budget level is a weighted average of the marginal cost of each relevant capital component that makes up the firm's target capital structure. D. Statements b and care correct. E. All of the statements above are correct. 3