The cost of each type of capital depends on the ___________
risk-free cost of that type of funds, business risk of the firm, financial risk of the firm, or all them are correct
I believe they are all correct - please advise answer & why - thanks!!!© BrainMass Inc. brainmass.com March 4, 2021, 6:13 pm ad1c9bdddf
The answer is all of them
This is because the cost of capital is the required return by the investors ...
The solution explains the various factors that affect the cost of capital.