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Which of the following statements is false? Cost of capital is determined by market forces, not company. Cost of capital is the prevailing expected return
Which of the following statements is false? Cost of capital is determined by market forces, not company. Cost of capital is the prevailing expected return that investors anticipated on alternative investments of similar risk. Cost of capital represents the historical return that investors received on alternative investments of similar risk. Business returns that were expected to exceed the cost of capital were considered value creating to investors
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