7. Match the following terms with their definitions: Terms Opportunity Cost Financial Policy Cost of Capital (8p) Definitions The target mix of sources of funds that the firm uses when raising new money to invest in the firm. A weighted average of the required rates of return of the firm's sources of capital (after adjusting for flotation costs and tax considerations) The expenses that a firm incurs when raising funds by issuing a particular type of security. The cost of a choice in terms of the best alternative foregone. Transaction Costs