Which of the following statements regarding cost of capital is not true?
A) It reflects the perceived level of risk that investors (owners and lenders) in the company require.
B) It is another term for "required rate of return."
C) It is typically defined as a weighted-average of all sources of capital for the company.
D) It is used to calculate the present value of anticipated cash flows for a project.
E) It is used when calculating the internal rate of return (IRR) of a proposed investment.
Correct Answer:
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