In a recent presentation, Tom Brown made the following statements about the cost of capital components. Statement I: "One way to estimate the cost of new equity (or cost of external equity) is (D1/Stock price) plus growth rate." Statement II: "Cost of new preferred stock can be estimated as the dividend on the preferred stock divided by the preferred stock's par value." Statement III: "Cost of debt is based on the coupon rate on the most recently issued debt." Statement IV: "Cost of retained earnings (or cost of internal equity) is the required rate of return on common stock. All four statements are true. II and III are false; I and IV are true. II is false; I, III and IV are true. I, II and III are false; IV is true. I and II are false; III and IV are true