Which of the following statements is true?

Group of answer choices

When calculating the WACC, the promised, after -tax return on debt should be used

When using CAPM to estimate a WACC, you should use the relevant, after -tax risk-free rate and the after-tax expected return on the market, taking both corporate and personal tax rates into account

When using CAPM to estimate a WACC, personal taxes are not deducted since the corporation must compensate investors for the extra tax obligations they incur

When using CAPM to estimate a WACC, the expected return on the market portfolio should be the expected return on a stock market index (e.g., the S&P 500 Index) when calculating the cost of equity capital, and it should be the expected return on a bond market index when calculating the cost of debt capital