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Venture Capital - Qualitative Reasoning

Consider the following three companies:
- Gasco owns and operates a chain of gas stations in the northeast US.
- Fuelco is a pre-revenue company that is attempting to develop new fuel-cell technology to replace the internal combustion engine.
- Combco combines the operations of Gasco and Fuelco.

Use qualitative reasoning to order the cost of capital for those three companies from lowest to highest. (There is more than one reasonable way to answer, but there are also wrong ways to answer) Explain your reasoning.

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Solution Summary

Comparing 3 companies and using qualitative reasoning to determine cost of capital.