Question
QUESTION 7 Which of the following statements are true(MULTIPLE ANSWER POSSIBLES - choose all that are correct!) a. The cost of capital is the cost
QUESTION 7
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Which of the following statements are true(MULTIPLE ANSWER POSSIBLES - choose all that are correct!)
a. The cost of capital is the cost of using the funds of creditors and owners, or the rate of return that the suppliers of capital (bondholders and stockholders) require as compensation for their contributions of capital.
b. Two primary sources for funding, debt or equity.
c. Cost of capital is a marginal cost, which is the cost of raising additional capital. Mostly often WACC is used to calculate cost of capital
d. WACC reflects the opportunity cost of supplier of the capital
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International Financial Management
Authors: Cheol Eun, Bruce G. Resnick
8th edition
125971778X, 978-1259717789
