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Which of the Following Factors Does Not Directly Affect the Firm's

question 6

Multiple Choice

Which of the following factors does not directly affect the firm's investment in working capital?


Definitions:

Cost of Equity

The return a company needs to generate on its equity investments to compensate its shareholders for taking on the risk of investing.

After-Tax Cost of Debt

The net cost of debt to a company after accounting for the tax deductions on interest expenses.

Market Rate of Interest

The prevailing rate of interest observed in the marketplace for securities of similar risk and maturity.

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