1. It is standard practice to evaluate investment decisions using the cost of the specific financing method involved. True or False

2. In determining the cost of debt, a firm could use its yields and prices of outstanding bonds. True or False

3. K_e represents an expected return to stockholders as well as a cost to the firm. True or False

4.The cost of retained earnings is considered to be equal to the required rate of return on a firm's outstanding common stock.