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Which of the following assumption underlie(s) the definition of cost of capital under capi

Which of the following assumption underlie(s) the definition of cost of capital under capital expenditure decisions?


I. The risk characterizing the new project under consideration is significantly lower than the
risk characterizing the existing investments of the firm
II. The firm will continue to adopt the same debt to equity ratio
III. The management of the firm will remain the same.


[A]Only (I) above
[B]Only (II) above
[C]Both (I) and (II) above
[D]Both (I) and (III) above

Dec 31 2017 View more View Less

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