Which of the following statements is CORRECT?

	a.	An increase in the risk-free rate will normally lower the marginal costs of both debt and equity financing.
	b.	WACC calculations should be based on the before-tax costs of all the individual capital components.
	c.	If a company's tax rate increases, then, all else equal, its weighted average cost of capital will increase.
	d.	A change in a company's target capital structure cannot affect its WACC.
	e.	Flotation costs associated with issuing preferred stock normally increase the WACC