Question: Hello, I'm having trouble figuring this out. Can you help me? Which of the following statements regarding the weighted average cost of capital (WACC) is

Hello, I'm having trouble figuring this out. Can you help me?

Which of the following statements regarding the weighted average cost of capital (WACC) iscorrect?

WACC calculations should be based on the before-tax costs of all individual capital components.

Flotation costs associated with issuing new common stock normally reduce the WACC.

If a company's tax rate increases, then all else equal, its WACC will decline.

A change in a company's target capital structure cannot affect its WACC.

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