Use the Following Statements to Answer This Question: I

question 129

Multiple Choice

Use the following statements to answer this question: I. The company cost of capital is identical to the risk-adjusted rate of return.
II) The company cost of capital does not depend on beta but does depend on the firm's interest rate on debt obligations.

• A) I and II are true.
• B) I is true and II is false.
• C) II is true and I is false.
• D) I and II are false.

---

Definitions:

Ethical

Relating to moral principles or the branch of knowledge dealing with these.

Ethical Imperatives

Principles or mandates of ethical conduct that dictate the morally right actions or behaviors.

Ideals

Concepts or standards of perfection or excellence that are pursued as goals or benchmarks.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.