Which of the Following Statements Regarding the Cost of Capital

question 92

Multiple Choice

Which of the following statements regarding the cost of capital is/are correct?
II) The after­tax cost of capital is weighted by the proportions of the capital components in the firm's long­ range target capital structure.

• A)Only statement I is correct
• B)Only statement II is correct
• C)Both statements I and II are correct
• D)Neither statement I nor II is correct

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