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Commerce · Q695

Business Finance

Graduate and Post Graduate · Commerce · question 695

Q695

Which of the following statements is not correct?

A.
The cost of capital is the 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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