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Because the Cost of Capital Is Used to Evaluate Future

question 72

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Because the cost of capital is used to evaluate future investment proposals, it is important to include flotation costs because such costs would be incurred if a firm were to raise new capital to fund proposed projects.


Definitions:

Cultural Differences

Variations in the norms, values, beliefs, and practices among different cultures or societies.

Intensifiers

Words or phrases used to give emphasis or stress on the degree of an attribute or action in communication.

Powerless Speech

A communication style characterized by hesitations, tag questions, and qualifiers that may indicate a lack of confidence or authority.

Non-Verbal Communication

The process of conveying a message without the use of words, which can include facial expressions, body language, and gestures.

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