The CFO of Anthem Insurance company is preparing for the budgeting discussions presented by each business unit in the company. She knows that she will need some idea of the company's cost of capital to fund these projects in order to evaluate and compare the options. Anthem's cost of capital depends primarily upon...

a. total assets reported in company's financial statements.

b. the nature of the company's business (operating risk)

c. the amount of debt financing (leverage) it choses to utilize (financing risk)

d. b. only

e. both a. & b.

f. both b. & c.