# Which of the following statements about the cost of capital is CORRECT? Answer Question 12 answers a. WACC calculations should be based on the before-tax costs of all the individual capital components. b. Flotation costs associated with issuing new common stock normally lead to a decrease in the WACC. c. A change in a companys target capital structure cannot affect its WACC. d. If a companys tax rate increases, then, all else equal, its weighted average cost of capital will decrease