If a firm uses a single source of capital to fund a project, which of the following is correct?
A) Only the cost of that source should be used to evaluate the project.
B) This project should still be evaluated using the firm's WACC.
C) The average cost of all previously raised capital should be used for evaluation.
D) Book values of the funding source should be used in calculating WACC.
Correct Answer:
Verified
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