Which of the following statements is CORRECT?

Select one:

a. The company best financial structure is determined by finding the capital structure that maximizes the company cost of capital.

b. If a company tax rate increases, then its weighted average cost of capital increases also.

c. The cost of common stock is equal to the common stock dividend in year one, divided by the current price of common shares.

d. The market value weights are preferred to the book value weights when calculating the WACC.