Issues related to the cost of capital

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Reference no: EM131046351

With respect to issues related to the cost of capital:Select one:a. an increase in the debt ratio will result in greater risk for debtholders but not equityholders.

b. the cost of capital is the return a firm must earn before tax to satisfy security holders.

c. the WACC is the correct discount rate for average-risk projects.

d. the expected return on equity is relevant to capital budgeting decisions.

Reference no: EM131046351

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