Which One of the Following Primarily Determines the Cost of Capital

question 265

Multiple Choice

Which one of the following primarily determines the cost of capital for a project?

• A) Current debt-equity ratio of the firm.
• B) Firm's WACC.
• C) Manner in which the funds will be utilized.
• D) Source of the funds for the project.
• E) expected internal rate of return on the project

---

Definitions:

Concrete Operational Stage

A stage in Piaget's theory of cognitive development (ages 7-12) where children gain the ability to think logically about concrete events.

Conservation

The understanding that certain properties of objects or substances do not change when their external appearance is altered, a concept children grasp in the concrete operational stage according to Piaget’s theory of cognitive development.

Gender-Appropriate Behavior

Actions or responses that society deems suitable for a person based on their gender.

Fathers

Male parents who play a role in the upbringing, support, and guidance of their children, having a significant impact on their emotional and social development.