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A Company Determines Its Overall Cost of Capital by

Question 113

Multiple Choice

A company determines its overall cost of capital by


A) multiplying the percentage of debt by its cost and adding the result to the percentage of equity multiplied by its cost
B) calculating the average cost of interest rates paid on loans and other debt instruments
C) calculating the percent of earnings paid out in dividends
D) multiplying the percentage of debt in the capital structure by the percentage of equity

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