1. Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, and no flotation costs are required to raise them, but capital raised by selling new stock or bonds does have a cost * O True O False 2. The text identifies three methods for estimating the cost of common stock from retained earnings: the CAPM method, the DCF method, and the bond- yield-plus-risk-premium method. However, only the DCF method is widely used in practice. O True O False