Which of the following statements is true about the cost of equity used in the WACC calculation? Companies should use the after-tax cost of equity as part of its WACC calculation The weighting of equity in the WACC calculation can be calculated based on either the market value of common stock or the book value of common stock The only way to calculate the cost of equity is through the capital asset pricing model (CAPM) The cost of equity will have a higher cost than debt as well as preferred stock due to the fact that it has higher risk relative to these capital sources