The cost to a corporation of each type of capital is dependent upon
A) the risk-free rate of bonds plus the business risk of the firm.
B) the risk-free rate of each type of capital plus the business risk of the firm.
C) the risk-free rate of each type of capital plus the financial risk of the firm.
D) the risk-free rate of each type of capital plus the business risk and the financial risk of the firm.
Correct Answer:
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