The Rates of Return, or Costs, That a Firm Must

Multiple Choice

The rates of return, or costs, that a firm must pay to raise funds to invest in capital budgeting projects are determined by:

A) the marginal revenue generated by investment in the new projects.
B) the investors who purchase the firm's stocks and bonds.
C) the internal rate of return of the firm.
D) the cash flow generated by the investment in the additional projects.
E) the dividend payout ratio fixed by the firm.