Which of the following statements is INCORRECT? Select one: O

a. The best financial structure is determined by finding the debt and equity mix that maximizes the corporate cost of capital

b. Cost of a particular source of capital debt, preferred stock, common stock, is equal to the investors required rate of return after adjusting for the effects of corporate taxes.

C. Cost of debt decreases due to the tax deductibility of interest

d. A firm financed completely with equity capital has a cost of capital equal to the required return on common stock