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1. Explain why the cost of capital is sometimes referred to as a hurdle rate? 2. What are three factors that affect the cost of

1. Explain why the cost of capital is sometimes referred to as a "hurdle rate"?

2. What are three factors that affect the cost of capital, but they cannot be controlled by the firm? Briefly explain.

3. What are three factors that affect the cost of capital that the firm can control? Briefly explain. How can they use these factors to their advantage?

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