The cost of each type of capital depends on the
A) risk-free cost of that type of funds.
B) business risk of the firm.
C) financial risk of the firm.
D) all of the above.
Correct Answer:
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Q2: The cost of capital is used to
Q3: The _ is the rate of return
Q3: The cost of capital reflects the cost
Q4: The cost of capital acts as a
Q5: The cost of capital is the rate
Q6: Holding risk constant, the implementation of projects
Q8: The cost of capital reflects the cost
Q9: The four basic sources of long-term funds
Q10: The firm's optimal mix of debt and
Q11: The specific cost of each source of
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