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  3. Study Set
    Principles of Finance
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    Exam 12: The Cost of Capital
  5. Question
    The Correct Discount Rate for a Firm to Use in Capital
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The Correct Discount Rate for a Firm to Use in Capital

Question 23

Question 23

True/False

The correct discount rate for a firm to use in capital budgeting,assuming that new investments are of the same degree of risk as the firm's existing assets,is its marginal cost of capital.

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