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Which one of these statements is correct A) the weighted avg. cost of capital is equal to B/S(Rs)(1-Tc) B) the cost of equity for an

Which one of these statements is correct

A) the weighted avg. cost of capital is equal to B/S(Rs)(1-Tc)

B) the cost of equity for an all-equity firm is less than the cost of equity for levered firm.

C) the cost of levered equity is indirectly relatedto beta

D) the discount rate for levered equity is unaffected by the debt-equity ratio

E) flotation costs increse the value of Rs

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