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The cost of capital: A. is the expected rate of return on capital investment. B. is an opportunity cost determined by the risk-free rate of

The cost of capital:

A. is the expected rate of return on capital investment.

B. is an opportunity cost determined by the risk-free rate of return.

C. is the interest rate that the firm pays on a loan from a bank or insurance company.

D. for risky investments is normally higher than the firm's borrowing rate.

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