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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!!!

    © BrainMass Inc. brainmass.com December 24, 2021, 5:12 pm ad1c9bdddf

    Solution Preview

    The answer is all of them

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

    Solution Summary

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