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A company's cost of capital is used as a tool in relation to which aspect of financial policy? Question 2 options: Valuing projects by discounting

A company's cost of capital is used as a tool in relation to which aspect of financial policy?
Question 2 options:
Valuing projects by discounting cash flows, and then selecting projects with the highest return.
Hedging a company's investments.
Evaluating a company's capital structure.
Diversifying a company's porfolio

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