51. Which of the following statements is CORRECT? a. The bond-yield-plus-risk-premium approach to estimating the cost of common equity involves adding a risk phemium to the interest rate on the company's own long-term bonds. The size of the risk premium for bonds with different ratings is published daily in The Wall Street Joumal or is available online. b. The WACC is calculated using a before-tax cost for debt that is equal to the interest rate that must be paid on new debt, along with the after-tax costs for common stock and for preferred stock if it is used. c. An increase in the risk-free rate is likely to reduce the marginal costs of both debt and equity. d. The relevant WACC can change depending on the amount of funds a firm raises during a given year. Moreover, the WACC at each level of funds raised is a weigital structure. component, with the weights based on the firm's targe most relevant risk measure for a publicly-owned firm that e. Beta measures market risk, which is generally the st not true unless all of the firm's stockholders are well seeks to maximize its intrinsic value. However, this is not true unless all diversified