Which of the following statements is true?

Select one:

a. The calculation of the cost of capital depends upon historical costs of funds

b. It is standard practice to evaluate investment decisions using the cost of the specific financing method involved

c. Retained earnings represent an internal source of funds that is raised without the payment of interest, or cost to the firm's stockholders

d. A firm's cost of preferred stock is equal to the preferred dividend divided by the net price after flotation costs