The cost of capital for a new project:

A、 is determined by the overall risk level of the firm.
B、 is dependent upon the source of the funds obtained to fund that project.
C、 is dependent upon the firm's overall capital structure.
D、 should be applied as the discount rate for all other projects considered by the firm.
E、 depends upon how the funds raised for that project are going to be spent.Difficulty: 1 EasyTopic:
Cost of capital - generalLearning Objective:
14-03 Determine a firm's overall cost of capital and how to use it to value a company.