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Commerce Short Question | Gkseries

Q.

Which of the following statements is not correct ?

[A] The cost of capital is required rate of return to ascertain the value of the firm.
[B] Different sources of funds have a specific cost of capital related to that source only.
[C] Cost of capital does not comprise any risk premium.
[D] Cost of capital is basic data for NPV technique
Answer & Explanation

Answer: Cost of capital does not comprise any risk premium.

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