If a firm pays flotation cost when it sells bonds,

• A. the net proceeds per bond received by the firm are less than the market price of the bond
• B. the cost of debt capital is lower than the bondholders required rate of return
• C. the net proceeds per bond received by the firm are higher than the market price of the bond
• D. the cost of preferred stock is lower than the stockholders required rate of return
• E. the cost of preferred stock is higher than the stockholders required rate of return