The free cash flow-to-equity method or the dividend discount model uses:

I) the weighted average cost of capital for discount rate; II) cash flows to equity, after interest and after taxes; III) the cost of equity capital as the discount rate; IV) after-tax cash flows without considering interest and dividend payments

Which is the correct answer?

A. I and II only

B. II and IV only

C. I and III only

D. II and III only