Which of the following statements about the cost of capital is TRUE（）
A. Ideally, historical measures of the component costs from prior financing should be used in estimating the appropriate weighted average cost of capital.
B. The cost of issuing new equity could possibly be lower than the cost of retained earnings if the market risk premium and risk-free rate decline by a substantial amount.
C. In the weighted average cost of capital calculation, the cost of preferred stock must be adjusted for the cost to issue new preferred stock.