Different divisions with differing lines of business use different costs of capital because their cost of ________ could be different.
A) debt
B) equity
C) capital
D) assets

Question

Quizplus · Accepted Answer

The cost of capital varies among different divisions because each division may have different risks and financing structures, affecting their overall cost of capital. This encompasses both the cost of debt and the cost of equity.

Different Divisions with Differing Lines of Business Use Different Costs