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Factors influencing the cost of capital

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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!!!

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Solution Summary

The solution explains the various factors that affect the cost of capital.

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The answer is all of them

This is because the cost of capital is the required return by the investors ...

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