Which of the following statements is CORRECT? (select all that apply) The target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise to fund its future projects. The investor-supplied items-debt, preferred stock, and common equity-are called capital components. Increases in assets must be financed by increases in these capital components. The optimal capital structure is the one where the percentages of debt, preferred stock, and common equity minimize the firm's value. The cost of depreciation-generated funds is approximately equal to the WACC calculated from retained earnings, preferred stock, and debt