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Which of the following is a true statement? Select one: a. In order to create value, a corporation must earn a rate of return on
Which of the following is a true statement? Select one: a. In order to create value, a corporation must earn a rate of return on its invested capital that is higher than the market's required rate of return on that invested capital. b. The firm's cost of capital is set by the senior managers and Board of Directors. c. A firm's cost of capital indicates how the senior managers view the risk of the firm's assets. d. The firm financed completely with debt capital has a cost of capital equal to the required return on its bonds
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