which of the following statements regarding the Wacc are correct ?

1 preferred ewuity has a tax shield as well as a debt because bothcrecieve a fixed amoutn of interest

2 book values should not be used to calculate the weight for each capital source

3 retained earnings are not included in the calculation of the WACC

a 1 and 2

b only 3

c none

d 2 and 3

e only 2