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A Company's Current Cost of Capital Is Based On

Question 35

Multiple Choice

A company's current cost of capital is based on:


A) only the return required by the company's current shareholders.
B) the current market rate of return on equity shares.
C) the weighted costs of all future funding sources.
D) both the returns currently required by its debtholders and stockholders.
E) the company's original debt-equity ratio.

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