_____ 1. Which of the following statements about cost of capital estimation is most correct?

a. The corporate cost of capital is either the cost of equity or the cost of debt, whichever is greater.

b. The corporate cost of capital is always used as the discount rate for all potential projects being evaluated in the organization.

c. Not-for-profit hospitals could benefit from tax shield by issuing debt; hence lower the cost of debt.

d. None of the above statements is correct.