Which of the Following Statements Regarding Cost of Capital Is

Multiple Choice

Which of the following statements regarding cost of capital is not true?

A) It reflects the perceived level of risk for which investors in debt and equity securities expect to be compensated.
B) It is another term for "required rate of return."
C) It is typically defined as a weighted-average of all sources of capital for the company.
D) It is used to calculate the present value of anticipated after-tax cash flows for a project.
E) It is used when calculating the internal rate of return (IRR) of a proposed investment.