Which of the following statements is CORRECT? There are several methods used to estimate the cost of equity, however, the most used method among large corporations is the Capital Asset Pricing Model (CAPM). The cost of debt in the WACC calculation should only include the cost of short-term debt. In the WACC calculation, we must adjust the cost of equity (the market yield) to reflect the fact that common stock dividends are tax deductible to the company paying the dividends. A change in a company's capital structure cannot impact its WACC