Which of the following statements is CORRECT? WACC calculations start with the before-tax costs of all the individual capital components and then adjust debt to reflect after tax cost. An increase in the risk-free rate will normally lower the marginal costs of both debt and equity financing A change in a company's target capital structure cannot affect its WACC. Flotation costs associated with issuing new common stock normally reduce the WACC. If a company's tax rate decreases, then, all else equal, its weighted average cost of capital will decline