Which of the following is NOT correct?

• A. A firms cost of capital is influenced by its capital structure
• B. The cost of a particular source of capital is equal to the investor's required rate of return after adjusting for the effects of both flotation costs and corporate taxes.
• C. Cost of capital the rate of return that must be earned on additional investment if firm value is to remain unchanged.
• D. Cost of capital is the average cost of the firms assets.
• E. If transactions costs of selling corporate securities increase, cost of capital will also increase .