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Which of the following is true? In theory, the cost of capital should reflect the particular way in which the funds areraised (capital structure used)
Which of the following is true?
In theory, the cost of capital should reflect the particular way in which the funds areraised (capital structure used) and the risk characteristics of the project. | ||
The shareholders expected rate of return is of little interest to financial managers because it does not tells about investor expectations. | ||
If the bondholder's required rate of return (current interest rate) equals the couponinterest rate, the bond will sell at par, or maturity value. | ||
A & C are both true |
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