Regarding the cost of capital, which of the following statements is true?

I. The short-term fund sources do not supply the financing necessary to support a firm's capital budgeting activities.

II. Money market instrument is not a source of long-term funds.

III. The weighted average cost of capital refers to the cost of capital required for one additional Rand of financing.

a.

II & III only

b.

I & II only

c.

None of I, II & III

d.

I & III only