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The Appropriate Cost of Capital for a Project Depends on __________________

Question 357

Multiple Choice

The appropriate cost of capital for a project depends on __________________.


A) The risk associated with the project.
B) The type of security issued to finance the project.
C) The type of assets used in the project (that is, whether they are current or fixed assets) .
D) The total risk of the firm's equity.
E) The interest rate on the firm's outstanding long-term bonds.

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