Which of the following statements is correct? O The cost of raising funds from retained earnings...

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Which of the following statements is correct? O The cost of raising funds from retained earnings is usually a lot cheaper than the cost of debt financing, because the firm already possesses the funds in retained earnings. O If a firm wants to lower its cost of debt, it can simply issue debt with a lower coupon rate. O A firm's weighted average cost of capitalshould decrease if its tax rate increases, but the yield to maturity of its noncallable bonds remains the same and all other factors are held constant. Which of the following statements is correct? O The cost of raising funds from retained earnings is usually a lot cheaper than the cost of debt financing, because the firm already possesses the funds in retained earnings. O If a firm wants to lower its cost of debt, it can simply issue debt with a lower coupon rate. O A firm's weighted average cost of capitalshould decrease if its tax rate increases, but the yield to maturity of its noncallable bonds remains the same and all other factors are held constant.

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