Although a firm’s existing mix of financing sources may reflect its ta
Although a firm’s existing mix of financing sources may reflect its target capital structure, it is ultimately ________.
A) the internal rate of return that is relevant for evaluating the firm’s future investment opportunities
B) the marginal cost of capital that is relevant for evaluating the firm’s future investment opportunities
C) the risk-free rate of return that is relevant for evaluating the firm’s future investment opportunities
D) the risk-free rate of return that is relevant for evaluating the firm’s future financing opportunities
ANSWER
B
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