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Which of the following statements regarding the cost of capital is/are correct? I. The weighted cost of capital is the discount rate used when computing

Which of the following statements regarding the cost of capital is/are correct?

I. The weighted cost of capital is the discount rate used when computing the net present value. II. The after-tax cost of capital is weighted by the proportions of the capital components in the firm?s long-range target capital structure. a. I only b. II only c. Both I and II d. Neither I nor II

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