Explain why the corporate cost of capital

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Explain why the corporate cost of capital (CCC) as defined in our textbook should not be used to evaluate all projects that a company has under consideration.

According to the book, the corporate of cost capital represents the blended, average, cost of a business's financing mix. The cost is then, in turn, is used as the required rate of return on the business's capital investment opportunities.

Reference no: EM131953204

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