22. Which of the following is true?

Group of answer choices

a. For capital budgeting and cost of capital purposes, retained earnings is free financing.

b. The cost of preferred stock to a firm must be adjusted to an after-tax figure because 70% of dividends received by a corporation may be excluded from the receiving corporation's taxable income.

c. The firm's cost of common stock financing obtained by issuing new stock is the same as the required rate of return on the firm's retained earnings.

d. For capital budgeting and cost of capital purposes, the firm should assume that each dollar of capital is obtained in accordance with its target capital structure, which for many firms means partly as debt, partly as preferred stock, and partly common equity.

e. both a and c