Select all that are true.

When calculating the cost of capital, the cost of retained earnings should be zero as the company already earned it in previous periods.

Typically the after$-$tax cost of debt financing exceeds the after$-$tax cost of equity financing.

The WACC represents the cost of capital based on historical averages. In that sense, it does not represent the marginal cost of capital.

The cost of capital should reflect the weighted average cost of the various sources of long$-$term funds a firm uses to finance the purchase of its assets.

All else equal, the DCF model suggests an increase in a company's stock price will increase the marginal cost of common stock, $r_s.$

If a company uses CAPM to estimate the cost of equity, a reduction in the market risk premium reduces a company's WACC.