6. The cost of capital: A is the interest rate that the firm pays on a loan from a financial institution. B. is the maximum acceptable rate of return on a project. C. is the minimum acceptable rate of return on a project. D. is always less than 10%. 3. A financial manager facing a capital budgeting decision must decide whether to A. issue stock or debt securities. B. use the money market or capital market. C. use primary markets or secondary markets. D. buy new machinery or repair the old. I "machinery or repair the old