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Commerce · Q89

Business Finance

Graduate and Post Graduate · Commerce · question 89

Q89

Which of the following statement is not correct?

A.
The cost of capital is required rate of return to ascertain the value of the firm
B.
Different sources of funds have a specific cost of capital related to that source only
C.
Cost of capital does not comprise any risk premium
Answer
D.
Cost of capital is basic data for NPV technique

Answer: Option C

Solution

Answer: Option C
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