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which of the following statements about cost of capital are true? A. internally generated cash flow is the cheapest form of capital for a company

which of the following statements about cost of capital are true?

A. internally generated cash flow is the cheapest form of capital for a company

B. the cost of equity is always higher than the cost of debt

C. Hybrid finance instruments usually have lower interest coupons because they usually give the credits some form of claim on the company's equity in addition to interest payments

D. When a company's credit rating is downgraded, it usually leads to higher interest coupons and subsequently to a lower price for the bond that are publicly traded

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