QUESTION 1 Which of the following statements about cost of capital is not correct? A firm's cost of capital indicates how the market views the risk of the firm's assets. A firm must earn at least the required return to compensate investors for the financing they have provided. The required return is the same as the appropriate discount rate. The cost to a firm for issuing bonds is equal to the return to the bondholders if we consider the flotation costs of issuing the bonds