Which of the following statements is correct? Group of answer choices

We should use historical measures of the component costs from prior financings that are still outstanding when estimating a company's WACC for capital budgeting purposes.

The cost of new equity is lower than the cost of retained earnings. T

here is an opportunity cost associated with using reinvested earnings, hence they are not "free."

The cost of preferred stock is expressed on an after tax basis because preferred stock dividends are deductible for tax purposes.