The component costs of capital are market-determined variables in the sense that they are based on investors' required returns.

Name: The component costs of capital are market-determined variables in the sense that they are based on investors' required returns.
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The component costs of capital such as cost of debt, cost of equity, and cost of preferred stock are determined by the market and reflect the required return of investors for investing in a particular security or asset.

The Component Costs of Capital Are Market-Determined Variables in the Sense