For cost of capital purposes, the firm should always consider reinvested earnings as the first source of capital – i.e. use these funds first- because reinvested earnings have no cost to the firm. A. True

For cost of capital purposes, the firm should always consider reinvested earnings as the first source of capital – i.e. use these funds first- because reinvested earnings have no cost to the firm.

A. True
B. False

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