Which of the following statements is true of the weighted average cost of capital? a. The weighted average cost of capital is

a weighted average of the component costs of debt, preferred stock, and common equity.

b. The weighted average cost of capital is maximum at the optimal capital structure level.

c. When cost of capital is more than the weighted average cost of capital, the stock price of a firm will also increase.

d. The weighted average cost of capital increases as more and more capital is raised during a given period.