Which of the following statements is correct? Select one: a. Suppose a firm is losing money and thus, is not paying taxes, and that this situation is expected to persist for a few years whether or not the firm uses debt financing. Then the firm's after-tax cost of debt will equal its before-tax cost of debt. b. The component cost of preferred stock is expressed as fps(1 - T), because preferred stock dividends are treated as fixed charges, similar to the treatment of debt interest. C. The reason that a cost of capital is assigned to retained earnings is because these funds are already earning a return in the business; the reason does not involve the opportunity cost principle. d. The bond-yield-plus-risk-premium approach to estimating a firm's cost of common equity involves adding a subjectively determined risk-premium to the market risk-free bond rate. e. None of the above is a correct statement