The cost of capital should be estimated from the historical cost of raising debt and equity capital.

Name: The cost of capital should be estimated from the historical cost of raising debt and equity capital.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

The cost of capital should not be estimated based solely on historical costs, as market conditions and risks may have changed over time. Instead, the cost of capital should be based on current market data and the perceived risks associated with a particular investment or project.

The Cost of Capital Should Be Estimated from the Historical