Why is the answer not C or E?

26. Which of the following statements is CORRECT? A. The WACC as used in capital budgeting is an estimate of a company's before-tax cost of capital B. There is an "opportunity cos" associated with using retained earnings-they are not "free C. The WACC as used in capital budgeting is an estimate of the cost of all the capital a company has raised to acquire its assets D. The percentage flotation costs associated with issuing new common equity are typically smaller than the flotation costs for new debt E. The WACC as used in capital budgeting will be the after-tax cost of debt if the firm plans to use only debt to finance its capital budget during the coming year