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Which of the following statements about the cost of capital is CORRECT ? Select one: a. Both the cost of debt and equity financing will

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Which of the following statements about the cost of capital is CORRECT ? Select one: a. Both the cost of debt and equity financing will decrease when the Federal Reserve tightens credit O b. Both the cost of debt and equity financing will decrease when a firm increases its debt/asset ratio. O c. Both the cost of debt and equity financing will decrease when a firm expands into a risky new area. O d. The WACC of a firm will increase when investors become more risk averse. e. Both the cost of debt and equity financing will decrease when a nuclear plant company encounters a ban on nuclear power generation in certain states

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