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2. Which of the following statements is most correct? a. An increase in the risk-free rate will have no impact on the marginal costs of
2. Which of the following statements is most correct? a. An increase in the risk-free rate will have no impact on the marginal costs of both debt and equity capital financing b. The weighted average cost of capital for a given capital budget level is a none-weighted average of the marginal cost of each relevant capital component that makes up the firm's target capital structure. c. The weighted average cost of capital is calculated on a before-tax basis. d. Statements a and c are correct. e. None of above
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