Which of the Following Statements Is CORRECT

Which of the following statements is CORRECT?

A) A change in a company's target capital structure cannot affect its WACC.
B) WACC calculations should be based on the before-tax costs of all the individual capital components.
C) Flotation costs associated with issuing new common stock normally reduce the WACC.
D) If a company's tax rate increases, then, all else equal, its weighted average cost of capital will decline.
E) An increase in the risk-free rate will normally lower the marginal costs of both debt and equity financing.