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A firm's cost of capital: A) Is independent of the firm's capital structure. B) For a specific project depends upon the systematic risk of that
A firm's cost of capital:
A) Is independent of the firm's capital structure.
B) For a specific project depends upon the systematic risk of that project.
C) Will decrease as the risk level of the firm increases.
D) Is always estimated as the weighted average cost of capital and should be applied as the discount rate for any project considered by the firm.
E)For a specific project, is primarily dependent upon the source of the funds used for the project.
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