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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
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18 votes
18 votes
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

User Sonia Maklouf
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2.8k points

1 Answer

17 votes
17 votes
I think it is true.
User Karan Dua
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3.4k points
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