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The firms cost of capital is equal to the opportunity cost of equity capital in a ____ firm

(A) All debt financed firm

(C) Equity and debt financed firm

(B) All equity financed firm

(D) Preference and equity financed firm

1 Answer

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Best answer

Correct answer is (A) All debt financed firm

The firms cost of capital is equal to the opportunity cost of equity capital in a all debt financed firm.

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