The Cost of Capital Should Reflect the Average Cost of the Various

question 29

True/False

The cost of capital should reflect the average cost of the various sources of long-term funds a firm uses to support its assets.

---

Definitions:

Centi-

A prefix in the metric system denoting one hundredth (1/100) of a unit.

1/100

A numerical representation often used to denote one percent or a fraction of a whole.

Milli-

A prefix in the metric system denoting a factor of one thousandth (1/1000) of the unit it precedes.

Metric System

A system of measurements that uses the base function of 10.