Moving to another question will save this response Question 17 of 4 Question 17 2 points Which of the following statements is CORRECT? a. We should use historical measures of the component costs from prior financings that are still outstanding when estimating a company's WACC for capital budgeting purposes b. In the WACC calculation, we must adjust the cost of preferred stock (the market yield) to reflect the fact that 70% of the dividends received by corporate investors are excluded from their taxable income. c. The cost of new equity (re) could possibly be lower than the cost of retained earnings (if the market risk premium, risk-free rate, and the company's beta all decline by a sufficiently large amount d. Its cost of retained camings is the rate of return stockholders require on a firm's comme Mock e. The component cost of preferred stock is expressed as p(-T), because preferred stock dividends are treated as fixed charges, similar to the treatment of interest on debt, Moving to another question will save this response. Question 17 of 4 STUDY GUID....docx MacBook Air ga 888 Fe