Multiple Choice
Use the following information to answer the question(s) below. 
The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil refining division is closest to:
A) 6.5%.
B) 7.0%.
C) 8.5%.
D) 10.0%.
Correct Answer:
Verified
Correct Answer:
Verified
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