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Read Jacobs and Shivdasani (2012) . Based on the results of a survey of financial professionals, the authors discuss differences in assumptions practitioners make when

Read Jacobs and Shivdasani (2012) . Based on the results of a survey of financial professionals, the authors discuss differences in assumptions practitioners make when estimating their firms cost of capital. The survey highlights six findings related to the cost of capital: cost of debt, risk-free rate, equity market premium, risk of the company stock, debt-to-equity ratio, and project risk adjustment.

Prompt: Choose at least two of these findings and discuss how differences in assumptions can lead companies to make poor investment decisions.

minimum 300 words

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