Which of the following statements is CORRECT? a) An increase in the risk-free rate will normally only increase the marginal costs of debt financing but not the marginal costs of equity financing. b) Flotation costs associated with issuing new common stock normally reduce the WACC. c) If a company's tax rate increases, then, all else equal, its weighted average cost of capital will increase. d) An increase in the risk-free rate will normally increase the marginal costs of both debt and equity financing. O e) An increase in the risk-free rate will normally only increase the marginal costs of equity financing but not the marginal costs of debt financing.

Which of the following statements is CORRECT? a) An increase in the risk-free rate will normally only increase the marginal costs of debt financing but not the marginal costs of equity financing. b) Flotation costs associated with issuing new common stock normally reduce the WACC. c) If a company's tax rate increases, then, all else equal, its weighted average cost of capital will increase. d) An increase in the risk-free rate will normally increase the marginal costs of both debt and equity financing. e) An increase in the risk-free rate will normally only increase the marginal costs of equity financing but not the marginal costs of debt financing