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    Exam 11: 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 54

Question 54

True/False

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

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