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    Exam 14: The Cost of Capital and Taxation Issues in Project Evaluation
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    Given That a Company's Net Operating Cash Flows Are $2
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Given That a Company's Net Operating Cash Flows Are $2

Question 4

Question 4

Multiple Choice

Given that a company's net operating cash flows are $2 million in perpetuity and the market value of capital is $10 million,what is the company's cost of capital?


A) 20%
B) 15%
C) 5%
D) 25%

Correct Answer:

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