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| Topic: |
Business
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| Number of pages / Number of words: |
2 / 330 |
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a. It is a way to measure the cost of capital , like DCF formula. If the firm is contemplating investment in a project that has the same risk as the firm’s existing business , the opportunity cost of capital for this project is the same as the firm’s cost of capital. The company cost of capital is not the cost of debt , and not the cost of equity but an average...
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a. It is a way to measure the cost of capital , like DCF formula. If the firm is contemplating investment in a project that has the same risk as the firm’s existing business , the opportunity cost of capital for this project is the same as the firm’s cost of capital. The company cost of capital is not the cost of debt , and not the cost of equity but an average...
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