Cost of capital looks at the relative cost of a collection of financing sources. Typically companies can source funding from internal sources like savings, or external sources like conventional bank loans or even issuing shares to investors. Which of the following is most true? It is always advisable to use one primary source of financing. Using more bank financing helps a company keep its after tax cost of capital low. Since issuing shares doesn't have a contractual obligation it is the convenient source of financing All sources of funding have a tax benefit when it comes to interest