Which one of the following primarily determines the cost of capital for a project?
A) Current debt-equity ratio of the firm.
B) Firm's WACC.
C) Manner in which the funds will be utilized.
D) Source of the funds for the project.
E) expected internal rate of return on the project
Correct Answer:
Verified
Q285: Which of the following is a disadvantage
Q286: The inclusion of flotation costs in capital
Q287: The market risk premium:
A) Varies over time
Q288: Including flotation costs into the net present
Q289: If a firm recalculates its WACC based
Q291: The pure play approach:
A) Cannot be used
Q292: The cost of capital depends primarily on
Q293: The weights placed on each source of
Q294: The pre-tax cost of debt for a
Q295: If the stock market increases in value,
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