You are provided with the following statements regarding cost of capital: i. The cost of capital is
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Question:
You are provided with the following statements regarding cost of capital:
i. The cost of capital is the discount rate that may be used for valuation purposes. ii. The cost of capital is the link between long-term financing decisions. iii. The cost of capital is the rate of return required by a firm in order to attract funds. iv. The cost of capital is the rate of return a firm must earn on its investments in order to maintain the market value of its ordinary shares.
Which of the above statements is/are correct?
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