Wind Mills Inc.'s asset is financed with 45% common stock, 5% preferred stock, and 50% debt. The earnings retention ratio is 70%, the equity beta is 2.08, and company pays a corporate tax rate of 21%. Which one of the following statements is correct? The cost of debt is unaffected by a change in the company's tax rate. The cost of equity can be estimated using the capital asset pricing model. The current yield-to-maturity on the company's bonds will be lower than the after-tax cost of debt. The weighted average cost of capital will remain the same if the company use the same combination of debt, preferred stock and common stock. The company pays out 70% of earnings to shareholders