Question
When firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's cash flows as: a simple average
When firms use multiple sources of capital, they need to calculate the appropriate discount rate for valuing their firm's cash flows as:
| a simple average of the capital components costs. | ||
| a sum of the capital components costs. | ||
| a weighted average of the capital components costs. | ||
| they apply to each asset as they are purchased with their respective forms of debt or equity. |
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Understanding The Finance Of Welfare
Authors: Howard Glennerster
2nd Edition
1847421091, 978-1847421098
