Use the following statements to answer this question: I. The company cost of capital is identical to the risk-adjusted rate of return.
II) The company cost of capital does not depend on beta but does depend on the firm's interest rate on debt obligations.

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I is false because the company cost of capital is not always identical to the risk-adjusted rate of return; it is a broader concept that includes the weighted average cost of capital (WACC), which accounts for the cost of equity and the cost of debt. II is false because the company cost of capital does depend on beta, which affects the cost of equity as part of the Capital Asset Pricing Model (CAPM). The firm's interest rate on debt obligations is only part of the cost of capital, not the sole determinant.

Use the Following Statements to Answer This Question: I