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The cost of capital is dependent on the target capital structure, debt used including cost, common equity which using CAPM is dependent on risk free
The cost of capital is dependent on the target capital structure, debt used including cost, common equity which using CAPM is dependent on risk free rate, beta of firm and the market Return.
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So what variables from above can a company control and which variables are out of its control. You will share this verbally or on the discussion board with the class when we meet.
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