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A firm's cost of capital: will decrease as the risk level of the firm increases. is independent of the firm's capital structure. depends upon how

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A firm's cost of capital: will decrease as the risk level of the firm increases. is independent of the firm's capital structure. depends upon how the funds raised are going to be spent. should be applied as the discount rate for any project considered by the firm. for a specific project is primarily dependent upon the source of funds used

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