Which of the Following Statements Is Correct

Which of the following statements is correct?

A) Capital components are the types of capital used by firms to raise money.All capital comes from one of three components: long-term debt, preference shares, and equity.
B) Preference shares do not involve any adjustment for flotation cost since the dividend and price are fixed.
C) The cost of debt used in calculating the WACC is an average of the after-tax cost of new debt and of outstanding debt.
D) The opportunity cost principle implies that if the firm cannot invest retained earnings and earn at least rs, it should pay these funds to its shareholders and let them invest directly in other assets that do provide this return.
E) The cost of new ordinary equity includes an adjustment for flotation costs which is expressed as a fixed percentage of the current share price.The flotation percentage is determined jointly by the current price of the firm's shares and its growth rate.