Cost of capital is:
a.the coupon rate of debt.
b.a hurdle rate set by the board of directors.
c.the rate of return that must be earned on additional investment if firm value is to remain unchanged.
d.the average cost of the firm’s assets.
a.the coupon rate of debt.
b.a hurdle rate set by the board of directors.
c.the rate of return that must be earned on additional investment if firm value is to remain unchanged.
d.the average cost of the firm’s assets.
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