Which of the following statements is most correct? ( )
选项：

A:The higher the firm’s flotation cost for new common stock, the more likely the firm is to use preferred stock, which has no flotation cost.
B:None of the statements above is correct.
C:
D:The bond-yield-plus-risk-premium approach to estimating a firm’s cost of common equity involves adding a subjectively determined risk premium to the market risk-free bond rat
E:The cost of retained earnings is the rate of return stockholders require on a firm’s common stock.
F:The component cost of preferred stock is expressed as k(1 - T), because preferred stock dividends are treated as fixed charges, similar to the treatment of debt interest.