Which of the following statements is CORRECT? Retained earnings are generated by the firm itself, so using it as a financing source does not entail costs. The percentage flotation cost associated with issuing new common equity is typically higher than the flotation cost for new debt. The WACC as used in capital budgeting is an estimate of a company's before-tax cost of capital. The WACC as used in capital budgeting is an estimate of the cost of all the capital a company has used to acquire its assets