Basic concepts regarding the weighted average cost of capital (wACC) which of the following statements about a firm's capital components and its weighted average cost of capital (wAcc) are true? Check all that apply. A firm's component costs of capital are determined by members of the board of directors, who are elected by the investors who provide funds to the firm. The component costs of capital represent the rates of return that the firm pays to use various type of funds that are provided by investors. The cost of capital, or required rate of return, that a firm should use when making an investment decision is calculated as a weighted average, or combination, of the various types of funds generally used, regardless of which specific type of financing the firm plans to use to fund the project if it is purchased. The cost of retained earnings, r_s, for a particular firm is greater than the cost of new equity, r_e, because retained earnings represent income that could have been paid to stockholders in the form of dividends. As a result, stockholders require a much higher rate of return when the firm retains earnings than when it issues new stock