Which of the following statements is FALSE?

Select one:

a.

Financial managers need to use all sources of financing in order to determine the cost of capital.

b.

One should use accounting-based book values rather than market values of debt and equity to determine the weights for the different sources of capital.

c.

To attract capital from outside investors, a firm must offer potential investors an expected return that is commensurate with the level of risk that they can bear.

d.

A firms sources of financing, which usually consists of debt and equity, represent its capital