A Moving to another question will save this response. Question 1940 Save a Question 19 2 points Which of the following statements is CORRECT? a. Because no flotation costs are required to obtain capital as retained earnings, the cost of retained earnings is generally lower than the after tax cost of debt. b. The tax-adjusted cost of debt is always greater than the interest rate on debt, provided the company does in fact pay taxes. Oc Higher flotation costs tend to reduce the cost of equity capital. d. Since debt capital can cause a company to go bankrupt but equity capital cannot, debt is riskier than equity, and thus the after-tax cost of debt is always greater than the cost of equity. e. If a company assigns the same cost of capital to all of its projects regardless of each project's risk, then the company is likely to reject some safe projects that it actually should accept and to accept some risky projects that it should reject > Moving to another question will save this response. Question 19 of 40