Which of the following statements is true about the flotation costs that are incurred when a firm issues new securities to raise funds?

Group of answer choices

The higher the flotation costs associated with a preferred stock issue, the lower the firm's cost of preferred stock, rps$.$

Flotation costs should be added to the per share price of a preferred stock issue to compute the cost of preferred stock, rps$.$

Floatation costs should be added to the before$-$tax weighted average cost of capital to determine the firm's overall net weighted average cost of capital after taxes.

When it incurs flotation costs, the firm normally receives a higher amount of net proceeds from a security issue than when there are no flotation costs.

Floatation costs increase the cost of using funds; e$.$g$.,$ the cost of issuing new common stock is greater than the cost of retained earnings because the firm must pay flotation costs to issue new equity.